Q: I need to know
if the 50/30/20 wear and tear allowance for a small business corporation should
be apportioned if the applicable asset was purchased during a year of
assessment. For example, if the asset was bought on 1 September and the
financial year end is February, can a taxpayer only get 50% of the allowance?
12E(1A)(b) does not in our view require that the allowance be apportioned if
brought into use during the year and provides for a straight line write off of
50/30/20 for 3 years starting in the year it was first brought into use.
Disclaimer: Nothing in this query and answer should be construed as
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advice based on the facts and circumstances of each transaction/case. Even
though great care has been taken to ensure the accuracy of the answer, SAIT do
not accept any responsibility for consequences of decisions taken based on this
query and answer. It remains your own responsibility to consult the relevant
primary resources when taking a decision.
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