SOLUTION2.

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All requirements of the Gross Income definition are satisfied. The issue to consider is whether or not the sale is capital or revenue in nature.
Capital in nature is not defined in the Income Tax Act and therefore we must refer to case law and the decisions of the court for guidance as to whether amounts are of a
capital nature.
Onus of proof in proving that the amount is capital in nature rests with the taxpayer in terms of s102 of the TAA.
The decisive factor in determining whether an amount is capital in nature is that of intention.
The intention at acquisition must be determined (Stott).
Any item that is inherited is considered to be of a capital nature initially, so it can be said that your mothers initial intention was capital in nature. Also refer to the length of
time that the asset is held for.
A revenue intention is evidenced by the acquisition and/or disposal being part of a scheme of profit-making (Pick 'n Pay Employee Share Purchase Trust). The mother did
not hold the asset in a scheme of profit making.
However, consideration must be given to whether there was a change of intention that subsequently changed the nature of the transaction to that of a revenue nature
The mere decision to sell does not indicate a change in intention; something more is required. (John Bell & Co.).
In terms of Natal Estates to determine whether a change of intention has taken place one should consider whether the taxpayer has crossed the rubicon or embarked on a
scheme of profit making.
Because your mother chose to restore the statue to a state that was referred to as good as new, it can be argued that she was not merely realising the asset to its best
advantage (Stott), but actually crossed the Rubicon (Natal Estates).
ALT: Your Mother did not acquire her statue in a scheme of profit-making, and her subsequent actions do not indicate a change of intention. The manner in which it was
sold is merely a realisation to best advantage (Stott) .
Conclusion: Your mother changed her intention and therefore the proceeds from the sale are of a revenue nature and included in gross income