Tax basics: Hold + 3 years: profits = capital gains, less than 3 years: profits = income. Dividends : These are taxed at source so no further taxes Sars has solid help guidelines....look up SARS capital gains.....
I was told as long as profits are below R120,000 per annum, one will not pay any tax (after selling)? Apparently SARS apply a 1/4 rule and R30,000 exemption (Therefore, 1/4*R120,000 profit = R30,000 - R30,000 exemption = 0). I'm not sure if this is correct; based on the previous comment this may not be correct. I hope to get clarity on this as well.
I have asked OST to include a schedule of costs, brokerage, commissions, easy trader costs under their tax statements in order to have some sort of deduction against trading profits. I live in hope!All my other Asset Managers supply me with that info. I disclose my Investment account results as CGT irrespective of the 3 year rule and they seem to accept it, it also helps the way that OST disclose it on their Tax statements. I disclose my Warrants and derivatives account results as a seperate business. I am trying to deduct expenses like depreciation on my PC,Bank charges, DSTV subs,telephone expenses. Last year they accepted a number of these expenses so again live in hope. If you do efiling they will ringfence your Derivative trading however you would need to go into SARS as invariably your documents would be to large to upload via direct scanning. But as they ring fence it dispute it. They have 21 days to respond to your dispute once you have supplied the supporting documentation. My 2c...
Let's just think about cfs' for a while, do you really receive a dividend or the eqivalent of a dividend. I mean you are not a shareholder your are a contract holder, secondly are you not been cash out or settled on profit or losses on cfd's daily ? It is not like you are holding script, you are holding a position were profits and losses are set off your cash daily, will sars not tax that at the full amount, no capital gain ?
Wonder if anyone can provide further advice about this topic; an easy way to reduce tax payments could be by opening an account in a spouse's name if he/she is paying less tax than you. Is this possible or am I missing the obvious??
I've moved on beyond profit (I've made more than 20% profit YTD), hence the reason for my question...I've read all the comments and I'm aware of the 3 year rule, etc.? However, I'm not planning to hold my shares for 3 years for the next few years and need to make a plan to minimise tax. This is the basis for my question. Anyone that can give me advice/tips to avoid tax legally?
I don't see the need to open another account,(which will attract extra costs) in your wife's name, merely get her to charge you an admin or consultancy fee which she will declare as income and you as an expense. You could do this till you both end up at the marginal rate. Remember that any extra income will have the effect of elevating her into a higher tax bracket.