You must carry on a trade.
You must derive income from that trade. Or, you must show you will in the future.
The amount claimed must be an expense or a loss.
You must incur the expense or loss in the year of assessment.
You must incur the expense of loss in the production of income.
You must set out the expense or loss for the purpose of trade.
As was stated earlier, the expense or loss may not be of a capital nature.
The expenditure or loss mustn't be prohibited by Section 23 of the Income Tax Act. Or any other section for that matter.
You may only claim expenses that are provided for under the Income Tax Act. In other words, you can only claim them as deductions once.
So, there were nine requirements that must be met in order to qualify for a deduction of expenditure and losses, in terms of the general deduction formula.
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