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tax calc

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Sugar_Snap
Frequent Contributor
Hi there, I completed my IT12 on efiling on Wednesday night, filed with SARS at 22h00, did not ringfence my 1st year loss and received my IT34 by 10h00 this morning. SARS paid out on my loss. They are on the ball these days with efiling.
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30 REPLIES 30
Not applicable
What code did you use to declare your loss? I assume you claimed a trading loss and not a capital loss.
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HateGauteng
Super Contributor
I submitted my efiling on wednesday morning got my money on friday morning. Also got paid out for my losses; recovered some 20-25% of my losses. I just totalled the losses and put it under other expenses.
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Sugar_Snap
Frequent Contributor
Hi Drago, the loss was a trading loss in my first year and the code I used was 2548. Did not ring-fence this loss.
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olilau
Frequent Contributor
hi sugar snap and HG for the benefit of all, and thank you for the good news by the way, you are both salaried employees and claimed trading losses against your normal earnings ?
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Sugar_Snap
Frequent Contributor
Hi Olilau, I do earn a salary from our cc and had other income as a consultant and a trading loss (2 ohter trades marked on IT12 front page) and combined all of them. Remember, this loss was my first year. Check the 3 out of 5 year rule on ring-fencing if you are trading for more years.
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HateGauteng
Super Contributor
I'm just a salaried pleb with travel allowance the only complication. So mine was simpler than I thought.
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olilau
Frequent Contributor
thanks sugar snap and HG. will remember for when i get there. of course would be nice not to have to contend with losses ;)
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Kipper
Contributor
Hi Guys, I've been looking at my tax form to claim the loss, but I don't find a code 2548, only a code 4251. Any input/advice?
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Sugar_Snap
Frequent Contributor
Hi Kipper, what is code 4251?
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Kipper
Contributor
Hi Sugarsnap. There is a code for gain 4250, and a code for loss 4251.
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olilau
Frequent Contributor
kipper, those codes refer to CAPITAL gains and losses. sugar snap codes 2548/9 are TRADING (revenue) source codes. thinking about it, those codes refer to "bookkeeping services" profit (2548) and loss (2549). is that maybe why SARS allowed the deduction ? (they did not know the true nature of the loss ? ) i have been looking through the source codes and find it really odd that there isn't a specific source code for investment trading activities.
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doomsdayza
Super Contributor
2598 / 2599 is a generic code some people also use.
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Kipper
Contributor
Hi Olilau. I suppose that you can't claim a Capital loss then. Any thoughts as to why they allocate a code for a capital loss?
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HateGauteng
Super Contributor
In my case, it seems that the capital loss got offset from my salary.
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Not applicable
Had a chat with a CA the other day, as I understand this matter: Say you make a loss of R1000, and then you profit R1500. now u dont have to pay any tax on R1000 of that profit so you only pay tax on the R500. ...err something like that
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Not applicable
E-filing is Brilliant. submitted mine and also received about 30% recovery of my business loss within days. as for codes... i dont' remember.
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Sugar_Snap
Frequent Contributor
Hi Olilau, yes you are right, these refers to bookkeeping serv, but I mentioned in my description on my IT12, other trades, that I am a futures trader. There is no code for it and maybe should have used the codes for other services instead, but received these codes from someone else and used it. SARS could not help us in this matter, and until they can, I carry on like this. Will change it next year to other services, hopefully this time with a profit as my intensions are not to keep on loosing money, but to make some money out of my trading.
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Sugar_Snap
Frequent Contributor
SORRYY !! I just checked on my IT12, I used 2599 and ring-fenced it. This was allowed, as I told them that I am a futures trader on SAFEX. I also used 2548 on my previous page on the IT12 as I did consulting work for clients ie tax & bookkeeping serv. Sorry for the confusion.
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Sugar_Snap
Frequent Contributor
SORRYY !! I just checked on my IT12, I used 2599 and ring-fenced it. This was allowed, as I told them that I am a futures trader on SAFEX. I also used 2548 on my previous page on the IT12 as I did consulting work for clients ie tax & bookkeeping serv. Sorry for the confusion.
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