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Nick says: 14 October 2015 at 11:18 I recently purchased a car cash for business and personal use. The amount paid was R103,000. How can I go about claiming a portion thereof as a tax deductible expense if I also use it for my business? |
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TaxTim says: 14 October 2015 at 11:39 Do you own the business or are you a salaried employee receiving a travel allowance? |
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Nick says: 14 October 2015 at 12:08 I own the business |
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TaxTim says: 15 October 2015 at 18:36 How do you pay yourself? |
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Nick says: 16 October 2015 at 10:35 I am a sole proprietor and pay myself from my business account. Generally, what the business makes, that is what I pay myself. |
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TaxTim says: 16 October 2015 at 18:58 As a sole proprietor you would be able to deduct the use of the car for business purposes in the ratio of business to total use. Did you keep a logbook? If so you would use that ratio to determine the deduction of the vehicle related expenses and the same for the car which you would divide the value by 5 and then use the apportionment as per the logbook. |
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