Page 21 - F6 - Capital Allowances - Leases
P. 21
Example
Mr Holmes hired computer equipment for his business
from Picoult Ltd for three years at an annual rental of
R30 000, which was fully deductible. At the end of the
lease he exercised his option to acquire the equipment
for R100 000 less half of the rentals of R90 000 paid
to date (that is, for R100 000 less R45 000, or a net
price of R55 000).
What amount must be included in Mr Holmes’
income on the exercise of the option?
