40% for business purposes at his trading store Menlyn Mowbray’s costs for in relation to this delivery vehicle incurred during the 2020 year of assessment were as follows: Fuel and oil 31 200 Repairs and maintenance 6 000 Licence 720 Insurance 600 Additional information: The Commissioner has approved a four-year write off period for the light delivery vehicle. Discuss and determine the amounts that resulting from the above transactions that are deductible in the determination of Menlyn Mowbray’s taxable income
Menlyn Mowbray owns a fleet of light delivery vehicles (aka bakkie). One of his delivery vehicles with a
market value of R170 000, and which had originally cost R190 000 on 1 March 2020 was exactly two
years old at that point in time. (The Small Business Development Corporation had valued it at this date
to determine the value of his assets and liabilities before granting him a loan. As of 1 March 2020, he
has used his light delivery van as follows:
60% for private purposes
40% for business purposes at his trading store
Menlyn Mowbray’s costs for in relation to this delivery vehicle incurred during the 2020 year of
assessment were as follows:
Fuel and oil 31 200
Repairs and maintenance 6 000
Licence 720
Insurance 600
Additional information:
The Commissioner has approved a four-year write off period for the light delivery vehicle.
Discuss and determine the amounts that resulting from the above transactions that are
deductible in the determination of Menlyn Mowbray’s taxable income?
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