Tax Help

[Bondizzo]

Hi, I would like to do my efiling soon and was wondering since I have a cc(although its kinda dormant) can I add expenses such as telephone/ADSL, Utilities I bought I have the reciepts, this in total could come up close to 25k and I could get some good money back, is this possible ?

 

[FacELesS.]

A struggling student's opinion:

Such deductions for the CC would only be possible if they meet the general deduction formula definition (S11a): "expenditure and losses actually incurred during the year of assessment in the production of income not of a capital nature either in part or in full laid out or expended for the purposes of trade"

If the CC incurred (CC actually paid for it) those expenses for the purpose of trade, it is deductible in the hands of the CC. You mentioned that the CC is "kinda dormant" which leads me to believe that those expenses were for domestic/private use. Expenses incurred for domestic/private use is a prohibited deduction in terms of S23(b).

 

[undesign]

Hi, I would like to do my efiling soon and was wondering since I have a cc(although its kinda dormant) can I add expenses such as telephone/ADSL, Utilities I bought I have the reciepts, this in total could come up close to 25k and I could get some good money back, is this possible ?

Yes, the more you spend the more SARS gives you back. Part of the "finance your business with government money scheme" they've got going. Not.

If you've paid provisional tax (it's basically dormant, so I doubt that you've paid any) then you could get that back should your assessed tax be less than the provisional tax paid. Your assessed tax is zero (you can't go less than zero on tax, although you can have assessed losses carried over to the next year).

R0 provisional tax less R0 assessed tax = R0 money in your pocket. Doesn't matter how much your loss is. Sorry.

If you've paid any provisional tax during the year it may be a different story.

The issue of whether those expenses are deductible i.t.o. section 11a is another matter, but irrelevant i.t.o. you getting money back.

 

[FacELesS.]

bleh, I can't read... +1 to SiriS (allowable deductions doesn't equal getting money back)