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SARS asked for calculation for depreciation on laptop

Riaan says:
6 April 2022 at 14:50

I completed my tax return through TaxTim. SARS asked me now to show them how we calculated depreciation on the laptop I use for work. Can you help me with this as I don't know what to give them?

TaxTim TaxTim says:
6 April 2022 at 19:34

Does your employer allow you to use your laptop for work? Do you have a letter or is it written in your contract?

Riaan says:
6 April 2022 at 20:48

Yes my employer does. I am a network engineer and it forms a very important tool for me to do my job. What should I provide SARS? They asked for a calculation on how you got to the depreciation value. I have the purchase invoice which was R 8000 and purchased in October 2021. According to the calculations when completing TaxTim the amount for depreciation was R 1111.11. I did upload the invoice for SARS but they said I must also provide how we calculated it.

TaxTim TaxTim says:
7 April 2022 at 14:16

You would need to send them a small excel sheet showing the calculation being the R8000 over 3 years and then how you apportioned it for business use.

Riaan says:
7 April 2022 at 17:16

What is the formula for the calculation?

TaxTim TaxTim says:
7 April 2022 at 10:30

It would be the cost divided by the number of years allowed as a write off for wear and tear.

R8000 / 3
= R2 666.67

then apportioned for business use, and divide by the number of months used:

R2 666.67 x (5 / 12)
= R1111.11

Did you only use the computer for business use?

Riaan says:
7 April 2022 at 10:53

Yes it is used for just business. What is the 5 for the last calculation?

TaxTim TaxTim says:
7 April 2022 at 18:34

You said the asset was used from October 2021 - SARS requires that the depreciation be worked out for the months of use only so this would be 5 months from October until February. Please resend the purchase document of the laptop along with the letter from the company stating that you use the laptop 100% for work purposes when sending the calculation to SARS. 

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