Tax deductibles for sole proprietors

[lerouxn]

I have been wondering about tax deductibles for sole proprietors.

Say I run a blog in the tourism industry and businesses pay me to advertise on my blog.
I earn R10 000 per month from the ads. My running cost (hosting) is R200 per month.
I have to pay tax on R9800 income right?
I go to a wine farm to do a blog post on them. I order food and wine, explore the place, take photo’s and write a review that is published on the blog.
My bill is R400. Is that deductible from my R9800 income to reduce the taxable amount to R9400? Surely that counts as a running cost?

Thanks in advance

 

[GMAN03]

Section 11 reads:
For the purpose of determining the taxable income derived by any person from carrying on any trade , there shall be allowed as deductions from the income of such person so derived—
(a) expenditure and losses actually incurred in the production of the income, provided such expenditure and losses are not of a capital nature

There are a whole bunch of other deductions listed below this but this is the general rule.

Just be careful of deducting things in Section 23 which reads as follows:
(1) No deductions shall in any case be made in respect of the following matters, namely—
(a) the cost incurred in the maintenance of any taxpayer, his family or establishment;
(b) domestic or private expenses...

Section 23 goes on a fair bit but I believe these are the major points pertaining to your case.

 

[lerouxn]

Section 11 reads:
For the purpose of determining the taxable income derived by any person from carrying on any trade , there shall be allowed as deductions from the income of such person so derived—
(a) expenditure and losses actually incurred in the production of the income, provided such expenditure and losses are not of a capital nature

There are a whole bunch of other deductions listed below this but this is the general rule.

Just be careful of deducting things in Section 23 which reads as follows:
(1) No deductions shall in any case be made in respect of the following matters, namely—
(a) the cost incurred in the maintenance of any taxpayer, his family or establishment;
(b) domestic or private expenses...

Section 23 goes on a fair bit but I believe these are the major points pertaining to your case.

So it will be fine to claim when I do the review, but not if I am just hungry?

 

[cr@zydude]

So it will be fine to claim when I do the review, but not if I am just hungry?

That's the basic idea. If you bought cameras, modems, servers for your blog, you get a depreciation allowance on those too.

 

[Hosehead]

unless you are an unbiased authorative go to source for reviews I wouldn't bother
Because hardly anyone reads these anymore let alone pays for them unless their food is grade A black bag material.

 

[lerouxn]

unless you are an unbiased authorative go to source for reviews I wouldn't bother
Because hardly anyone reads these anymore let alone pays for them unless their food is grade A black bag material.

Thanks, but I was just using that as an example

And thanks to all the other replies!