Limitations to lessors
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Limitation of allowances claimable by lessors

CPD Hours: 0.5

Price: R49.00


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Title / Topic

Limitation of allowances claimable by lessors

Presenters : Karen van Wyk GTP(SA)


OUTCOMES OF TOPIC
After studying this topic related to disposals, recoupments and scrapping allowance you should be able to:
✓ Understand what is meant by “disposal of an asset”;
✓ Understand what is meant by “recoupment”;
✓ Understand when the general recoupment provision is applicable;
✓ Calculate a recoupment using the basic recoupment formula;
✓ Calculate the tax value of an asset;
✓ Understand what is specifically excluded from the general recoupment provision;
✓ Identify the specific provisions in the Income Tax Act that specifically prohibit the application of section 8(4)(a);
✓ Understand when section 8(4)(k) will be applicable;
✓ Understand what the implications will be if section 8(4)(k) is applicable;
✓ Identify the nature of a disposal (voluntary vs involuntary);
✓ Understand how a deferral works;
✓ Understand what is meant by “scrapping allowance”;
✓ Understand the difference between a section 11(o) allowance and a recoupment;
✓ Identify under which circumstances a scrapping loss will arise;
✓ Identify under which circumstances a scrapping loss will not be deductible.
✓ Be able to properly disclose adjustments related to the disposal of and asset and the resulting recoupments and or scrapping allowance and complete the relevant sections on the ITR14.
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