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An employer purchases a motor vehicle for 40k and sells it to his key employee for R20k?

Posted 16 July 2013

Can the business deduct a loss on an item bought and resold immediately? The business is an engineering company.

TaxTim TaxTim says:
22 July 2013 at 16:20

The business is making a loss from the sale of the vehicle and may be able to write this loss off against taxable income. However the employee will be taxed on the difference between the market value and the amount paid.

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