Q: How do I adjust profits under Schedule D Cases 1 and 11? I have trouble working out what is allowable and what isn’t.
28 August 2012
This is a complex subject, so this won’t be a comprehensive answer.
This is a complex subject, so this won’t be a comprehensive answer. However, the first thing to consider is that expenditure is only allowable as a deduction in calculating Schedule D profits if it has been incurred wholly and exclusively for the purpose of the trade (Case 1) or profession or vocation (Case 11).
As a rule, therefore, a number of expenses end up...