Wear and tear allowances
| OUTCOMES OF TOPIC After studying this topic in relation to capital allowances on movable assets, you should be able to: ✓ Understand what is meant by “movable assets”; ✓ Understand the term “small business corporation (SBC)” and be able to evaluate whether a business meets the requirements to be classified as a SBC; ✓ Calculate accelerated capital allowances for a SBC in terms of section 12E; ✓ Understand the term “process of manufacturing”; ✓ Calculate capital allowances in terms of section 12C; ✓ Identify when wear and tear in terms of section 11(e) is applicable; ✓ Identify when an asset may be claimed in full in terms of section 11(e) and the SARS Private General Ruling No.7; ✓ Calculate the capital allowance in respect of moving costs in terms of section 11(e) and section 12C; ✓ 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. |