Tax 101

[Azbubu]

So my father just found a dentist receipt of mine and told me not to forget to include it in my tax return. I've only ever completed a tax return once and only filled in the basics. I didn't even know you could claim for medical bills etc. What else can/should you include in your tax return?

 

[Skywalker42]

There is no short answer. Read the main sections (a) to (x).
You will immediately know when a section applies to. If it doesn't, skip it.
If you feel it might apply to you read the sub-sections.

11. General deductions allowed in determination of taxable income
(a)
(b)
.
.
.
(x)

Good luck, its about 15 - 20 pages.


Link


Read post #4 before you actually read all this sh_!t

 

[Picard]

A collegue of mine's husband just bought a laptop for their daughter. As a side-line business he has a CC in which he does peoples' tax statements. Because he has this business he will write off this purchase (of the laptop) against tax ... he says. I've never taking business and economics or tax classes in school or at university nor have I found the laymen sources to explain this concept to me adequately. Would someone please oblige and explain this to me. Why is this possible?

 

[Skywalker42]

Regarding the original post I found this on the SARS site.

Tax Guide on the Deduction of Medical Expenses

 

[Skywalker42]

A collegue of mine's husband just bought a laptop for their daughter. As a side-line business he has a CC in which he does peoples' tax statements. Because he has this business he will write off this purchase (of the laptop) against tax ... he says. I've never taking business and economics or tax classes in school or at university nor have I found the laymen sources to explain this concept to me adequately. Would someone please oblige and explain this to me. Why is this possible?

Tax questions are the hardest ones...
( Mine is: Why pay income tax...but I will never ask it...not anytime soon )

site:www.sars.co.za depreciation of assets <--- put that into Google

I don't think he can deduct the total price of the laptop from his taxable income in one go but there is a percentage of the price that can be deducted as depreciation for a few years ( 4 or 5, not sure ) and the percentage decreases each year.

 

[Faetsa]

A collegue of mine's husband just bought a laptop for their daughter. As a side-line business he has a CC in which he does peoples' tax statements. Because he has this business he will write off this purchase (of the laptop) against tax ... he says. I've never taking business and economics or tax classes in school or at university nor have I found the laymen sources to explain this concept to me adequately. Would someone please oblige and explain this to me. Why is this possible?

Because he has a company and the laptop is a business tool it contributes to earning of income, so the full amount he spent for the laptop will be added to his expenses.

I don't think he can deduct the total price of the laptop from his taxable income in one go but there is a percentage of the price that can be deducted as depreciation for a few years ( 4 or 5, not sure ) and the percentage decreases each year.

He can also claim depriciation on equipment including computers every year baised on the original purchase price.

Tax questions are the hardest ones...
( Mine is: Why pay income tax...but I will never ask it...not anytime soon )

Because our tax money are used to run the country, that's why technically the goverment works for us, even though I personally don't think so :twisted:

 

[Celine]

A collegue of mine's husband just bought a laptop for their daughter. As a side-line business he has a CC in which he does peoples' tax statements. Because he has this business he will write off this purchase (of the laptop) against tax ... he says. I've never taking business and economics or tax classes in school or at university nor have I found the laymen sources to explain this concept to me adequately. Would someone please oblige and explain this to me. Why is this possible?

he cannot claim depreciation for the laptop he bought it for his daughter and not for his business. he only depreciates equipment that he purchases for his business.

 

[BlackMamba]

Because he has a company and the laptop is a business tool it contributes to earning of income, so the full amount he spent for the laptop will be added to his expenses.



He can also claim depriciation on equipment including computers every year baised on the original purchase price.



Because our tax money are used to run the country, that's why technically the goverment works for us, even though I personally don't think so :twisted:

so u can do a better job

 

[Picard]

So businesses can buy stuff for its use until they don't have to pay any tax and so it basically balances out.

 

[ice_cubes]

he cannot claim depreciation for the laptop he bought it for his daughter and not for his business. he only depreciates equipment that he purchases for his business.

how will sars know that he is not using it?

 

[ice_cubes]

Tax questions are the hardest ones...
( Mine is: Why pay income tax...but I will never ask it...not anytime soon )

site:www.sars.co.za depreciation of assets <--- put that into Google

I don't think he can deduct the total price of the laptop from his taxable income in one go but there is a percentage of the price that can be deducted as depreciation for a few years ( 4 or 5, not sure ) and the percentage decreases each year.

wear & tear allowance on laptops is 3yrs... so he can divide the cost of the laptop (minus vat) into 3 & claim a portion per yr