For every asset you purchase, you are assigned an asset number so that all asset ownership can be tracked. For the solar panels and hives, this means a serial number. For blueberry bushes, you will assigned a blueberry bush on a farm. Remember, you own the asset, not the land. The land is owned by the farmer or a landlord.
How tax incentives work
As investors own the individual assets for income generation, the income generated will be subject to taxation as part of your income tax. However, there are several tax deductions that can be applied for, such as Section 11(e) for wear and tear on income-generating assets. There is also the ability to claim under Section 12B of the Income Tax Act for the generation of electricity from renewable sources and agriculture. While Fedgroup assists our clients with the necessary paperwork to submit these claims, we do not offer tax advice and asset owners need to speak to their tax practitioner on the best benefits available. We do, however, provide our Impact Farmers with a handy guide to help you claim your tax benefit.
You can also contact Bizzacc (www.bizzacc.co.za) for a clearer picture about the implications on your taxable income.