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Taxable Farming Income Calculation 2024

The document outlines the computation of taxable farming income for the year ending 29 February 2024, detailing various income sources and expenses. The final taxable income from farming operations is calculated to be R292,509, with an additional non-farming income of R9,600. The steps include sales, stock adjustments, and various farming expenses.

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trimainef
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5 views1 page

Taxable Farming Income Calculation 2024

The document outlines the computation of taxable farming income for the year ending 29 February 2024, detailing various income sources and expenses. The final taxable income from farming operations is calculated to be R292,509, with an additional non-farming income of R9,600. The steps include sales, stock adjustments, and various farming expenses.

Uploaded by

trimainef
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Question 2

Computation of taxable farming income for the year ended 29 February 2024

Step Description R
Step 1
Sales of livestock 621 000
Grazing fees 26 000
Donation (market value) 9 750
Total Step 1 656 750
Step 2 Less: Exempt farming income –
Step 3 Add: Closing stock (2 150 × 25.82) 55 509
Step 4 Less: Opening stock (market value on commencement) 245 000
Step 5 Less: Livestock purchases (within limit) 125 600
Step 6 Add: Closing stock of produce –
Step 7 Less: Opening stock of produce –
Step 8
Grazing fees 22 500
Fertilizers 4 675
Food for livestock 15 850
Repairs to fencing 2 875
General farming expenses 3 250
Total Step 8 49 150
Step 9 Taxable income from farming operations 292 509
Step 10 Less: Capital development expenditure –
Step 11 Other income (non-farming: machine letting) 9 600

Final Answer: Taxable income from farming operations = R292 509


Non-farming income of R9 600 is added separately to determine total taxable income.

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