I bought a computer for my work (I'm a sole proprietor) and I believe that I have to apportion any depreciation I want to claim on it on my ITR12--although it is mostly used for work, I do use it a bit for non-business purposes as well.
Could you please tell me how I would calculate an apportionment like this and if I would have to have been keeping records of use for the computer?
You would need to determine a basis of usage, so if you use the computer for work and only occasionily use it for personal purposes then you could write off the entire amount as a business expense. It would be a rough estimation and difficult to prove, but SARS are open to some guesstimation.
Moirasays: 4 July 2013 at 14:21
Unfortunately the computer sees a little personal use most days. I'm glad to hear that SARS accept estimates, but if I were to guess a percentage--eg. 75% or 80% work use--and say that that was what I'd done in my depreciation calculations, is there a chance they could ask for proof or further supporting documents?
TaxTimsays: 4 July 2013 at 22:31
They could ask for proof, which could be demonstrated by the need of a computer for your business and what exactly you do with it, if the majority of time spent is for business use they may accept a 100% write off in which case you would provide the invoice stating the value you used to depreciate.
Moirasays: 5 July 2013 at 18:24
Thanks, I appreciate the help.
TaxTimsays: 7 July 2013 at 13:38
Always a pleasure!
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