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TaxTim says: 24 October 2012 at 6:44 In theory you are supposed to include your assets and liabilities if you run a "local business" or sole proprietorship. Many people don't however, but it should be done. A fixed deposit, if less than a 12 month deposit would be included in Cash in Bank while things like Unit Trusts, so you actual balance on the certificate your adviser would have sent you. The Net Capital would just be the Assets less any Liabilities of the business. |
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Francois says: 24 October 2012 at 23:19 Thank you, I appreciate the help. I am still a little confused by the Net Capital item. I understand it from an accounting point of view, but on the ITR12, it is listed under (Local) Assets and also included in the automatic calculation for Total (Local) Assets. If the Net Capital equals Assets less Liabilities, then the value of all assets are counted twice for the total. This seems strange. I don't currently have any liabilities. |
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TaxTim says: 25 October 2012 at 21:57 All the assets and liabilities on the return are your personal amounts whereas the Net Capital would be that of a business if you own one. So it would be separate to the other assets and liabilities and therefore not double counted. |
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Francois says: 26 October 2012 at 10:25 Thank you for clearing up the confusion. :) |
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TaxTim says: 27 October 2012 at 15:44 Only a pleasure! Always here to help! |
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