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Depreciation FAQs

Posted 17 February 2017 under TaxTim's Blog


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What constitutes wear and tear? What is depreciation? What is the depreciation limit?
Wear and Tear or Depreciation is the decrease in value of an asset. SARS allows you to deduct this decrease each year based on the tables. See here for the latest Depreciation Calculator

Can I claim depreciation for my car as a sole proprietor if I have a log book by using the tax table?
You would be able to depreciate your car over 5 years, but you need to then apportion it for the use of business travel based on the logbook. You would then need to also apportion your other fuel and car expenses by the same ratio and deduct those costs.

Can I claim for my financing costs (interest on my car finance) and depreciation on my vehicle?
Yes, you can, you will need to have a look at our Travel Deduction Calculator to see what your best options are and when you Register for TaxTim to begin the process of completing your return we will assist you in filling the information in the correct spot.

Can I claim depreciation on my vehicle OR Can I claim for depreciation on my personal vehicle used for business purposes? OR Can I claim for the depreciation of my vehicle for which I get an allowance or is that included?
You would be able to claim depreciation on your vehicle but would need to prove to SARS the basis for apportioning expenses between business and private use by keeping a vehicle logbook or demonstrating some similar method.

Can you claim depreciation as an expense against rental income?
Depreciating furniture used within the property. If you have fitted it out with tables and chairs, beds etc., these items need to be replaced eventually, as damage builds up, and that will be a future cost to you. SARS allows you to "depreciate" these items now, in the years leading to their replacement, and this future cost can be declared as Depreciation in the Local Business section to help reduce tax payable now. Click here to Calculate Your Depreciation (also called Wear and Tear) on certain items.

How do I apportion the depreciation?
You can divide the amount you received from the depreciation calculator by 12 and times it by a number of months you used the asset.

How do you apportion depreciation for a PC with both business and personal use?
SARS asked for calculation for depreciation on laptop Please refer to the Calculator. Kindly print out our wear and tear calculation

Depreciation for Commission Earner
The same calculator

Options or rules for a claim on depreciation and traveling allowance claim OR Can I claim for the depreciation of my vehicle for which I get an allowance or is that included? OR Can I claim depreciation on a personal vehicle even though I get a travel allowance?
You would be able to claim depreciation on your vehicle but would need to prove to SARS the basis for apportioning expenses between business and private use by keeping a vehicle logbook or demonstrating some similar method.

Do I enter the whole wear and tear value in my tax return?
If you had the asset for the whole year then yes you do enter the whole amount.

How to dispute SARS denying the wear and tear allowance on my equipment?
You would have to lodge a dispute and in the letter, accompanied by your supporting documentation you must clearly state that the equipment was used for work purposes.

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