CATEGORIES
- (47)Accounting & Financial Reporting
- (1)Accounting for Income Tax
- (1)Application of tax rates, s6(2) rebates
- (1)Assessed losses
- (10)Blogs
- (1)Business Advisory
- (8)Capital Gains Tax
- (1)Capital Gains Tax - Individuals Tax
- (1)Capital Gains Tax Implications of Trusts
- (2)Case study: Home office expense
- (1)Case study: Travel allowances
- (1)Company Formations
- (136)Corporate Tax
- (10)Customs and Excise
- (2)Deceased Estate
- (1)Deductions Pre-trade and prepaid expenses
- (1)Deregistration
- (2)Employer and Employee (PAYE and UIF Specific)
- (1)Estate Duty
- (1)Events / Webinars
- (11)Faculty News
- (2)Farming
- (168)Individuals Tax
- (1)Input - Customs Duty
- (3)Interest
- (18)International Tax
- (1)Nature of the rights of beneficiaries
- (1)Notional input tax
- (9)Payroll
- (2)Practical Payroll
- (1)Professional Ethics
- (2)Provisional tax (Link with other Taxes)
- (4)SARS Issues
- (161)Tax Administration
- (2)Tax Administration Part 2B: Resolving Problems with SARS using the Tax Ombud
- (1)Tax Administration Part 3B Dispute Resolution - Objection and appeal
- (3)Tax Dispute Resolution
- (1)Tax Opinions
- (3)Tax Update
- (1)Tax implications of loans to trusts
- (1)Tax residence
- (1)Tax returns and payments
- (3)Transfer-Pricing
- (1)Trust Income / Gain Allocations
- (1)Trust types and income allocations
- (11)Trusts
- (86)VAT
- (3)VAT periods
- (1)Wear and tear allowances
- (13)Wills, Estates & Succession
- (1)Zero Rated
- (2)eFiling
- Show All
Rugby Memorabilia As Collectables
- 08 December 2023
- The Tax Faculty Tax Specialist
This FAQ article is based on tax law for the year ending 29 February 2024.
1. The Problem / Facts
Can rugby memorabilia be capitalised and depreciated in a business?
2. Applicable Law
Income Tax Act, Eighth Schedule; section 11(e)
3. Application of the Law to the Facts
Collectables are included in the definition of an asset; hence, they are considered capital. Depreciation applies when the asset undergoes wear and tear during its use in the taxpayer's trade. Given my understanding of how memorabilia and collectibles are typically treated, they are unlikely to meet this definition.
4. Conclusion
Memorabilia and collectibles are eligible for capitalization but are unlikely to qualify for depreciation.
Join The Tax Faculty community today by registering for our courses starting January 2024: https://taxfaculty.ac.za/courses
0 COMMENTS
There are not comments for this article at the moment, check back later.
LEAVE A COMMENT
You must be logged in to add a comment, log in now.