Cost of an asset
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Cost of an asset for purposes of claiming a capital allowance

CPD Hours: 0.5

Price: R49.00


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Title / Topic

Cost of an asset for purposes of claiming a capital allowance

Presenters : Karen van Wyk GTP(SA)


OUTCOMES OF TOPIC
After studying this topic, you should be able to:
✓ Understand what the cost of an asset is;
✓ Understand when the cost of an asset should be used or when the value of the asset should be used to calculate the capital allowance;
✓ Understand the link between the cost of an asset and VAT in terms of section 23C;
✓ Recognise why a difference between accounting cost/value of an asset and the tax cost/value may occur;
✓ Understand what information is contained in a “Fixed Asset Register”;
✓ Understand what information is contained in a “Tax Asset Register”;
✓ Complete the “Balance Sheet” section on the ITR14 tax return with regards to fixed assets by using the Statement of Financial Position and the Property, Plant and Equipment note to the financial statements;
✓ Complete the “Tax Computation” section on the ITR14 return in respect of non-deductible depreciation/amortisation for accounting purposes;
✓ Complete the “Tax Computation” section on the ITR14 return in respect of the applicable capital allowance in terms of the Income Tax Act.
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