Page 25 - F6 - Capital Allowances - Leases
P. 25
Example
Mr Koontz hired imported computer equipment for his
business from Dean Ltd for three years at an annual
rental of R180 000, which was fully deductible.
The equipment had cost Dean Ltd R400 000. Mr
Koontz was permitted to continue to use the
equipment at the end of the three-year period for a
rental of R10 000 a year.
What amount must be included in Mr Koontz’s
income on the termination of the initial lease?
