Page 11 - PowerPoint Presentation

ALLOWANCES & CAPITAL GAINS

Trading stock

• Anything produced, manufactured, constructed,

assembled, purchased to be used in manufacturing, sold

or exchanged and

• Anything if proceeds from its disposal will form part of

the TP’s gross income

• Proceeds from disposal = included in gross income

• Trading stock purchased = deduction for tax purposes

• treatment of trading stock on hand at beginning and end

of YOA

11