Capital Allowances

The write off period for a delivery vehicle is 4 years.

Stark Industries acquired a second-hand delivery vehicle with a remaining useful life of 3 years.

The correct write-off period for tax purposes is?

• 4 years

• 3 years

• However long Stark wants

• 2 years

A coffee machine was purchased for R3 000 for the office kitchen on 1 December 2023.

The s11(e) deduction for the YOA ended 31 December 2024 amounts to:

(Write off period: 3 years)

• R3 000

• R0

• R1 000

• R83.33

Shipping/Delivery charges can be included in the cost of an asset for purposes of s11(e).

• True

• False

Interest charges on the purchase of an asset for purposes of s11(e) can be included in the cost of the qualifying asset.

• True

• False

Moving costs incurred in year 4 for an asset that is written off over 5 years will be written off?

• In year 4 completely

• In year 5 completely

• In year 4 and 5

• Never - not in production of income

A manufacturing machine is donated by Stark Industries to Bohker Industries to assist them with the start-up of their company. An allowance on the manufacturing machine is claimed in terms of?

• s11(a)

• s12C

• s11(e)

• No allowance can be claimed

Mrs X, a sole trader, receives a computer as a dividend in specie from Microsoft, which cost Microsoft R8 000 and has a current market value of R14 500.

She begins to use the computer in her trade solely for business purposes.

The s11(e) allowance is based on what amount?

• R0

• R8 000

• R14 500

If a taxpayer believes that a write-off period for an asset is shorter than the write off period in BGR 7, then they can apply to SARS to write off for a shorter period.

• True

• False

Mr Y (a sole trader) bought a brand-new computer for R21 000. He uses it

70% for business purposes and 30% for private purposes for the full 2024 YOA.

Assuming a write-off period of 3 years, what is the s11(e) allowance for the 2024 YOA?

• R0

• R7 000

• R2 100

• R4 900

Ms J (sole trader) purchased a Toyota Hilux for R640 000 which used as a personal use asset for 3 years. At the start of year 4, when the Toyota Hilux had a market value of R470 000 and remaining useful life of 3 years, she started using it for 100% business purposes.

The write-off period for passenger vehicles is 5 years.

What is the correct cost and write-off period for s11(e)?

• R640 000 and

  5 years

• R470 000 and

  5 years

• R470 000 and

  2 years

• R470 000 and

  3 years

• R640 000 and 3 years