Page 16 - F6 Slide - Taxation - Lecture Day 2
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Deductions
• Pre-trade expenditure.
• The expenditure incurred before start of trading can be
deductible once trading commence.
• It is deductions if:
A) the expenses were incurred before commencement of
trade.
B) the expenses were incurred in the preparation of
trade.
C) The expenditure were not previously claimed as a
deductions.
D) The expenditure must qualify as a deduction in s 11.
The pre-expenditure is limited to the income earned
from the specific trade, the excess will be carried forward.
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