CGT/TAX????

[#1]

Anyone know how much my profits will be taxed, i already took out the first 10k, is this 15%/25%/35%????/? thanks for any info

[platsak]

You made profit in this market!! The only upside to my losses is that its not taxable

[Electrox]

25% of your capital gain is taxed at your marginal tax rate over and above the first R12000 That is exempted(I think its 12k or 15k) so basically if you make 100k Capital gain and you are in the highest tax bracket of 40%, you pay about 10k in CGT.

[#4]

100k Capital gain and you are in the highest tax bracket of 40%, you pay about 10k in CGT.oh my f*&%*&% why are taxes so high? , so if i made 100k , would i be taxed 40k? or 10k?

[CHATTYCHAT]

New dispensation - if you cannot prove your intention as an investor, your profit will be taxed at your (personal) marginal income tax rate. By default, from Oct 1, 2007 all profit will be taxed if the particular share was not held for more than 3 years. In January 2008 SARS issued a 34 page tax guide which will answer all your questions http://www.sars.gov.za/it/Brochures/return/Tax%20Guide%20for%20Share%20Owners.pdf

[Electrox]

U pay 10K tax on 100k gain, 40% of 25% Capital gain is taxed. get it?

[CHATTYCHAT]

R100000 less R15000 = R85000; * 25% * (highest marginal rate=40%); = R8500 BUT: as I have referred to earlier, if you're proved to be speculative in the market, R100000 * (highest marginal rate=40%)=R40000 normal tax.

[James15]

Hi.... Capital gain exemption is R12 500 per individual. Just remember to include any capital losses made... ie. R100K capital gain on share X and a R15K loss on share Y therefore {(R100K - R10K loss - R12.5 exempt)*25% inclusion* marginal rate} We nearing the tax year end therefore if you wanting to 'tax plan' -- take a look at any shares that are making 'losses' and consider the benefit of selling them before 28/2/2008.. therefore benefiting from 'loss' deduction for tax purposes. Furthermore consider the tax effects of any profit taking ..ie. is it better to take the gain in current tax yr or wait a day or two and take it in the new tax yr - especially considering the fact that 'tax exemptions generally increase year on year... OBVIOUSLY YOU MUST STICK TO YOUR INVESTMENT PLAN OVER AND ABOVE YOUR TAX PLAN BUT ALWAYS CONSIDER THE TAX EFFECT OF TRADING ESPECIALLY TOWARDS THE END OF THE TAX YEAR.

[graycat]

chattychat is correct,with the new law it is very difficult to prove your intention when buying the share ,so its taken as revenue and taxed at your marginal tax rate! there is a section in the help and education section.

[Hibiscus]

What about about costs incurred to make those losses(?) Like ADSL, Transaction costs, stationary, office and the like

[Ega]

Don't forget the Electricity Generator and petrol

[Hibiscus]

Serious??

[CHATTYCHAT]

The Tax guide I referred to above explains everything on establishing the base cost of your share(s). When your'e conducting a business, the related expenses are deductible: this should be brought into account after you established the plus or minus from actual trading. Then: share trade business for the salaried is capped, which means you have to prove that the circumstances justify your claim to offset losses against other income, example Salary. Otherwise you'll be allowed to offset a loss against profit(s) in future years. Opinion reserved.