Depreciation / Wear and Tear Posts in Tax Q&A


What must I do with the auto-assessment from SARS?



I received an SMS from SARS which says something about an auto-assessment. When I login to eFiling I see there is an option to accept or edit it. Are there any risks involved with accepting it? What should I look out for? Please help, I know nothing about this new SARS process.

Why am I getting auto-assessed? Where is my tax return?



I received an auto-assessment from SARS but I am confused what this means. Why have I been selected by SARS and how did SARS get my data? Can I still submit a tax return if I want to?

Will I get a tax refund if I accept the SARS auto-assessment?



My auto-assessment shows that I am due a tax refund. Can this be correct? Do you think I will receive the refund if I accept it, or should I rather reject it and file a tax return?

What are cost of sales in a consulting business



What would cost of sales be in a consulting business - would my time be the cost? Would it be paper, laptop etc?

This query relates to question 4216 "Please enter the cost of sales incurred." in the Self Employed/Independent Contractor/Freelancer section.

2 IRP5s and commission



Before paying the fee I just want to make sure you'll be able to help me. From March to July. I earned a normal salary but from August I earn a basic and commission. As I sales rep I'm able to write off wear and tear on my
vehicle but obviously only from August. Same goes for my laptop etc. will your system be able to take this into account?

Depreciation on a cellphone



I have a pay as you go cellphone that I bought cash. Thus I unfortunately do not have monthly statements to determine an exact break between business and personal use. I spend about R300 pm on airtime and I receive a cellphone allowance of R750 pm from my employer. How do I calculate and show the depreciation amount and do I need a letter of consent if the allowance is shown on my salary slips?

Solar wear and tear



What are the wear and tear rates for solar equipment (renewable energy)?

Depreciation of on second hand assets



I'm working for a new company that started last year January (2016). All of the computers and furniture was inherited from the previous company (Re-branded the company, but doing exactly the same thing) how do I calculate depreciation with regards to Computers, Laptops & furniture?

What type of tax category do I fall into?



I have one client in the US, I use all my own equipment and work from home. What type of taxes should I be filing? I am based in South Africa and bring funds through via PayPal, I am not taxed in the US as I am considered a independent contractor.

Minimizing tax liability



At the end of the current tax year my taxable income will exceed R1.5 million largely due to income from an employee share option scheme. My income comprises salary only. And from the normal statutory deductions I contribute to a retirement fund and retirement annuity. Apart from maximizing my contribution to retirement funds, how else could I reduce my tax liability?

How can I depreciate my small business equipment if I dont have invoices?



I have a mobile phone; laptop; tablet and home office furniture which I use for my small business. I bought them four years ago, but I've never depreciated them because this is my first year of business. Can I depreciate them now even if I don't have the invoices anymore? And, if I don't depreciate them can I just record it as a company asset? These IT equipment were bought second hand and some are old.

Registering as a Provisional Tax Payer?



I had freelance jobs and although I don't own my
own business/am not registered as a business. All but one of the freelance
jobs were taxed.
Should I register as a provisional tax payer? If so, how do I go about
doing this and what deductions can I make? e.g. Can I claim for Uber trips,
cellphone bills, wear and tear on my equipment (computer, camera) etc? If I
can claim for things like this, how do I go about doing it?

A notice of objection



SARS didn't accept my log books, my 2015 tax return, there's zero KMs for business use.
I now need to object and they require proof of ownership- I have documents from Wesbank. Lastly, can I do this via TaxTim or must I go into SARS?

Is occupation rent an allowable deduction against rental income?



Is occupational rent paid to a developer, of a new-build property, an allowable expense to deduct from taxable rental income? The property in question was rented out in the same tax year as occupational rent was paid.

Do second-hand purchases count towards expenditure?



Can I purchase 2nd hand equipment as an asset for my business and then add that full amount to my business costs? The item will come in under R7000, so I believe I can write the depreciation off within one tax year.

Depreciation on a phone



I use my phone for work purposes and have a letter from my employer confirming this. Can I claim depreciation on it even if I've had it for 2 years already?

Vehicle depreciation vs deemed travel allowance deduction. An I allowed both?



Vehicle depreciation vs deemed travel allowance deduction. An I allowed both?

Over how many years can you depreciate earthmoving equipment



Whats the depreciation on a 2006 bobcat?

Add more than one depreciation expense



I have a laptop, tablet and cell phone that I need to depreciate, how do I do this?

Depreciation on office equipment



I am hiring office equipment such as chairs, tables etc. can I claim depreciation on it?

Do I have to pay additional tax for deducting my car from my salary before tax?



How does deducting your vehicle from your gross salary affect your tax. The vehicle purchased is for personal use however we have the option of deducting it directly from our salaries before tax.

Never filed a return, can I still do it now?



I have been employed for 3 years and my employer deducted tax from my income. They however never gave me an IRP5 and I have no proof of the income I earned from them as they issued electronic payslips and I never printed it.
2 Months ago they closed their doors and all employees was left stranded, can I perhaps still claim the tax I paid back from SARS if they over taxed me?

Outstanding tax returns without supporting documents



How to get irp5 from 1991 to 2000 from previous employers

HOw can I get my refund?



SARS owes me more than R12000 and refuse to pay because I have not submitted a tax return for 2008, how can I correct this?

Can I claim full depreciation on a broken cellphone?



I had a cellphone that I was calculating depreciation on. However the phone broke and I now have a new phone which I will claim depreciation on. For the previous phone, am I able to claim the remaining deprecation amount (that I would have been claiming on in coming years) in the current tax year?
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