Page 72 - P6 Slide - Taxation - Lecture Day 1

Solution - Depreciable assets formulae

(par 30(4))

Firstly, one should determine whether the

depreciable formulae are applicable. Determine

whether:

• expenditure was incurred before and after the

valuation date, and

• the asset is a depreciable asset and capital

allowances of R200 were claimed, and

• the proceeds (R700) exceed the expenditure

(R300) – in other words, whether the asset was

disposed of at an overall capital profit.