Tril owns a fleet of light delivery vehicles (aka bakkie). One of his delivery vehicles with a market value of R170 000, 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

Tril’s costs 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
License		720
Insurance		6 00

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 Tril’s taxable income.

Answer rating: 100% (QA)

The amounts that are deductible in the determination of Trils taxable income ar... View the full answer