Depreciation / Wear and Tear Posts in Tax Q&A

How do I calculate fringe benefit tax on my vehicle?

Posted 21 May 2013

vehicle was purchased 2009 on hp, value including vat R433000.00 deposit R95000.00, financedamount R379000I use the car daily to go to work/home but am on clients sites most days for business.not sure how to work out paye monthly on this?rose

SARS requested additional documentation but didn't tell me

Posted 10 May 2013

I am a provisional taxpayer... I work freelance and my income fluctuates. I've been doing my own tax through efiling for several years now, and have never had a problem. So this year, I send off my return on January 29 (yes, I know, leaving it till the last minute... every year I
promise I won't do that!!), and my assessment comes back, I'm owed R120.56. The amount is so small because I actually already did all the calculations in order to make my third provisional payment by the September deadline, so as not to incur any interest....

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Car allowance vs Company Car?

Posted 25 April 2013

Could someone please help me to understand what would be the best option. I am currently sitting in a situation where I can choose between a car allowance (travel allowance ) and a company car. I don't understand the tax implications regarding this.. I would obviously want to take the least expensive route..

What is the difference between wear and tear allowance v depreciation?

Posted 23 April 2013

If a small business selling Lollies and sweets buys a production machine from china for R50 000.00, a fridge for R1 500.00 , small kitchen appliances and utensils to the value of R1 800.00 (various) and a car to use for driving to markets to sell lollies and sweets. Where and how would I use wear and tear allowance or depreciation and what is the difference? Can small items such as kettles and cutlery be seen as assets?

When capitalising an amount for renovations to a home office how do I calculate the amounts?

Posted 11 April 2013

What amount is allowable for Repairs and maintenance and how do I depreciate the capitalised amount which consists of plumbing, paving and builders?

Depreciation on cars, how does it work?

Posted 12 March 2013

Your depreciation calculator - is it up to date in terms of percentages allowed etc?

Second question - I am a sole prop. I know that I can deduct business expenses (not permanently employed), but I am not sure about the installment that I pay for the vehicle (HP). Can I deduct for tax purposes since I use the car for business.

Last question - if the above deduction is allowed, can I also add depreciation of the vehicle to the 'basket' or is it a matter of either or?
<...

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Just want to confirm how to dispute SARS denying the wear and tear allowance on my laptop?

Posted 12 March 2013

SARS denied the wear and tear claim according sec 11 e for the laptop I had to buy myself and use at work 100% of the time, they said its denied according to sec 23m, but I'm sure that was incorrectly interpreted because it says except for..... and then refers to sec 11e?!

So do I contact them and say go study a bit and make sure of your facts or how do I go about this? Dispute and add sec 23 for them?

Where can I get a list of the items that I'm allowed to claim for as a sole proprietor?

Posted 1 March 2013

I know about things like rent, telephone, internet, stationery, etc., but what else?

How can I account for a lost laptop?

Posted 20 February 2013

I've just started up as a sole proprietor and would normally depreciate laptops etc over 3 years. However, this year I lost a laptop that was not insured, and had to replace it. Can I write off the full cost of the lost laptop in this year? If so, would this still fall under depreciation?

Asset depreciation in first tax year

Posted 10 February 2013

If I registered for tax for the 2012 tax year, does that mean that I can't claim asset depreciation in that first year, since the calculations are based on asset usage in the previous year (when I wasn't utilizing the assets for work purposes)?

Is the depreciation of a private vehicle an allowable deduction?

Posted 10 February 2013

I do not own a business, I only earn a salary.

How to calculate an asset depreciation calculation?

Posted 27 January 2013

1. Is it possible to claim for depreciation for individually-purchased PC components? For example, if I purchased a monitor separately, or custom-built a PC (HDD, RAM, CPU, etc.). If so, would I use the "Computers: Personal" asset type when performing the calculations?2. If an asset is used for work non-exclusively, would I simply claim a percentage of the depreciation? For example, if a monitor cost R3000 and the deductable amount was R900 for the tax year, but I used it only 80% of t...

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Are these tax-deductible medical expenses?

Posted 24 January 2013

1. Eyeglasses (frames & lenses) and the preceding eye test at Spec-Savers.-- If so, would this fall under "impairment" or general medical expenditure?-- If you then purchase new frames & lenses, is it again tax-deductible?2. "Cosmetic" surgery (the removal of moles, to be more specific).

When claiming depreciation on a vehicle can you also claim the repayments?

Posted 23 January 2013

I am a small business owner/operator and i use a bakkie for business, which I purchased in the last tax year (2012). If I claim the 5 year depreciation can I also claim the monthly repayments on the vehicle?

Thanks

If you have a depreciation expense from an asset eg a delivery vehicle, will that be offset by the a

Posted 22 January 2013

When do you put in the the add back?

Supporting documents - what if they are not submitted on time? I uploaded and forgot to submit?

Posted 21 January 2013

Hi Tim, great website and good gen. SARS phoned me asking for a schedule of my deductions. I uploaded it and forgot to click on 'submit', then received a second assessment disallowing the deductions - probably because I didn't submit the document.

What do you suggest? If I lodge a notice of objection, will they allow the late submission of the document? How much should I explain to them - fall on their mercy regarding my mistake, or just assert that I am entitled to the deductions? <...

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When receiving a travel allowance, can I claim depreciation the vehicle?

Posted 29 October 2012

I use my own car (which is financed) to do my work (labour law consultant) for a company. Can I claim depreciation against my car for this?

Started freelancing, not paying provisional tax. Can TaxTim help?

Posted 20 August 2012

I have being earning some money on the side as a freelancer during this last tax year and I went fulltime freelancing in a personal capacity at the end of 2011.

Will TaxTim be able to guide me with the expenses I can claim as part of operating as a freelancer? SARS is very strict on when certain expenses can be claimed. They seem to only allow expenses when salary is earned on a commission basis.

Tax season open - What can I claim as a deduction to reduce my tax?

Posted 11 July 2012

Salaried employees all over the country are busy filing their tax returns in the hope that perhaps they will be due a refund. For most who earn income from their employer they have already paid their taxes in the form of Pay-As-You-Earn (PAYE), but now what? Although salaried employees are limited, by tax law, as to what they can deduct from their income, there are a few things that can be claimed. Deductions against income reduce ones Taxable Income and thus reduce the amount of tax owing to SARS. The allowable tax deductions are:...

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How do I calculate how much tax I owe?

Posted 23 April 2012

TAX PAYABLE is essentially calculated as follows:


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