If a small business selling Lollies and sweets buys a production machine from china for R50 000.00, a fridge for R1 500.00 , small kitchen appliances and utensils to the value of R1 800.00 (various) and a car to use for driving to markets to sell lollies and sweets. Where and how would I use wear and tear allowance or depreciation and what is the difference? Can small items such as kettles and cutlery be seen as assets?
Wear and Tear and Depreciation are essentially the same thing, but for tax and accounting purposes respectively. You can write off assets used for business purposes according. If you click Tax Help on the TaxTim page and look under Wear and Tear you will see the write off periods for assets.
There are also different write off periods for small businesses such as yours as well so you could benefit from those as well.
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