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Cell phone depreciation

Posted 16 August 2013

I took out a 24 month cell phone contract at the end of January 2013 that I pay for on a monthly basis. My phone is used for business and personal purposes. I wish to write off my cell phone as a depreciation deduction (source code 4027). The cell phone handset is valued at around R6 799. Does this mean that I can write off the full amount of R6 799 for the 2013 tax year as it is less than R7000? What can I use as proof for SARS? A letter from the cell phone company confirming the value of the handset?

TaxTim TaxTim says:
16 August 2013 at 18:47

You would need to apportion the cell phone between business and personal use, and use the apportioned value when calculating the depreciation since only business assets can be depreciated, not personal. You would be able to write off the full value as it is less than the R7 000 small items threshold. A letter indicating value from the cell phone company would assist, but you would also need to prove your apportioning as well, perhaps by keeping a log of phone calls.

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