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Thread: Profit on sale of vehicle

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    Profit on sale of vehicle

    I just want to make sure if I have made my entry correctly. I bought my vehicle for R115000 and sold it for R95 000. the accumulated depreciation on that vehicle was R67 000 for the period. So I have already written the depreciation that i have claimed on the aset back to that account and hence the R43000 "profit" . Please help, I really need to know if the R43000 really is a profit? and will I then get taxed on that. Do I need to show in my tax form when creating my ITR12 that I had a capital gain and then use the R43000 figure?

    Thank so much for your superb work with dummies like me.

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    Silver Member geraldenek's Avatar
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    can you please provide the date the vehicle was bought and sold, your depreciation amount seems very rounded

    Fro capital gains tax you won't have to pay as the 43 000 x 25% = 10 750 and the exclusion is R17 500 for the 2011 year.

    You will still have to declare it and you will declare the 43 000 as capital gain
    Geraldene Kapp
    Professional Tax Help
    www.mytaxhelp.co.za

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    Thank you for your help, it makes sense to me now. My depreciation sounds rounded as I did not have the exact figures with me, so I used all rounded figures.

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