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Online Share Trading

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Urgent ! Just the simple answer please.

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Copper
Regular Contributor
hi guys.. Example : i have a trading account that i sell/purchase shares regularly , lets say 4 times a month...(this is not my primary source of income as i have a day job).... income generated from shares is lets say R100 000. What is the taxation on that amount? Simple answer please!!
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29 REPLIES 29
john_1
Super Contributor
take day job tax rate and apply it to profits, so if you currently pay 40% take profit and subtract 40% and give it to SARS.
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john_1
Super Contributor
take day job tax rate and apply it to profits, so if you currently pay 40% take profit and subtract 40% and give it to SARS.
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john_1
Super Contributor
Or you could subscribe to my scheme and write off you investment this tax year as a "paper loss" and if and when I sell my patents..you can give up your day job..
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Copper
Regular Contributor
thx john..so thats 40k on 100k ... does it matter what they classify you as? i.e a trader or an investor etc?
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prancing_horse
Super Contributor
You add the R100000 to your taxable income, that then becomes your gross taxable income. If you not already paying tax at the marginal rate, ie 40%, the income from trading could most probably push you to that bracket, which could lead you to paying as much as 50% of your trading profit to SARS
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HateGauteng
Super Contributor
If trades are within 3 years, its considered as income.
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john_1
Super Contributor
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Theater_Cat
Super Contributor
ask sars - 0860121218. or email them.
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divz
Super Contributor
remember to deduct any expense incurred in earning your trading income.
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john_1
Super Contributor
computers, books, comms, losses, account charges,data feeds, trading advice.( I think) all deductable expense. Huh! I wonder If my wife expenses could be claimed as trading advice.. God knows shes is good at handing it out.
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Terra
Super Contributor
Pay someone that knows....it's the right thing to do.
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Not applicable
Thats SABCs slogan "its the right thing to do" ....
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Terra
Super Contributor
My mistake.... thought is was SARS's.
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saash
Super Contributor
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saash
Super Contributor
Nonsense - this forum is jam-packed full of excellent professional, free advice!!! We help eachother out - its called community work.
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saash
Super Contributor
Copper - there is lots you can do to reduce your tax. You decide if you want to make it complicated and "efficient" .... but you asked for a simple urgent answer.
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Wizard
Super Contributor
The only thing I'm afraid of, is the advise that that the novice traders take from the so called "professional traders"! It all looks very simple! I'm sure lots of people have disappeared because of that. That Noise have caused me few headaches in the past!
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john_1
Super Contributor
Saash please drop me a mail so I can respond (re.funding), I would never ask a lady to put her email up on the forum.I seem to have deleted your previous emails to me.
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Not applicable
22. Amounts to be taken into account in respect of values of trading stocks.-(1) The amount which shall, in the determination of the taxable income derived by any person during any year of assessment from carrying on any trade (other than farming), be taken into account in respect of the value of any trading stock held and not disposed of by him at the end of such year of assessment, shall be- (a)in the case of trading stock other than trading stock contemplated in paragraph (b), the cost price to such person of such trading stock, less such amount as the Commissioner may think just and reasonable as representing the amount by which the value of such trading stock, not being shares held by any company in any other company, has been diminished by reason of damage, deterioration, change of fashion, decrease in the market value or for any other reason satisfactory to the Commissioner; and (b)in the case of any trading stock which consists of any instrument, interest rate agreement or option contract in respect of which a company has made an election which has taken effect as contemplated in section 24J (9), the market value of such trading stock as contemplated in such section. ## This is an excerpt of s22(1) which basically state that you can deduct your allowable costs i.e. costs in the production of income including your books, brokage and admin fees. ## My suggestion is for Simon to get us a tax expert who will discuss not advice us on taxation of shares. I know people say that one must get a tax practitioner but what if that tax practitioner gets your tax calculations wrong, of course you will be liable to SARS and not the tax consiltant. So my point is, get people equipped with basic tax knowledge by asking SARS to send a tax specialist to on a one hour course.
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