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Traders - allowable deductions for tax

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Not applicable
Hi, I would like to enquire what expenses are commonly claimed by the traders? Atm I have the OST monthly fee, brokerage costs, laptop depreciation, data costs etc. Any other allowable deductions? Provisions?
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10 REPLIES 10
mullet_fish
Regular Contributor
....good luck unless you can prove full time.... Not worth having an investigation
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AJ_
Contributor
All expenses incurred in the conduct of the trade activity
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SimonPB
Valued Contributor
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Vagabond
Contributor
Holding shares is not seen as a trade thus no deduction for expenses.
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CHATTYCHAT
Super Contributor
What do you mean by this statement? Of course the taxman will peruse (scrutinise) your trading activities.
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geordie1
Super Contributor
it would be a good idea to get input from a properly qualified accountant if your activity is 'significant" enough in financial terms to warrant this.while I am no trader I am a full time investor for the last 19 years and after getting advice I set up a cc and I claim all expenses that a company can where it is used to assist me in my investment activities-these are too numerous to mention but I pay myself a salary and set up a provident fund to protect me if I really stuffed it up.obviously if you trade in your personal capacity then what you can claim if anything will be limited
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Brainware
Frequent Contributor
Thanks for the info How does the Provident fund work ?
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geordie1
Super Contributor
brainware-its like a pension fund-my cc contributes a percentage of my salary into the provident fund which is administered by an insurer who invests the net proceeds of the contribution within the regulations-its done an average return of 16% over 19 years and I am happy with that-basically your money doubles in under 5 years.I was new to investing when I started and the provident fund was my back up plan-you could use an RA as another option as I have one of those as well-u can see with this mindset I would be a useless trader
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Brainware
Frequent Contributor
Thank you that is a clever idea
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geordie1
Super Contributor
Brainware-I cannot claim it as mine.many small businesses have pension or provident funds or both for their staff-with umbrella schemes a one man fund is quite possible as long as you make the minimum contributions required by administrator.In SA it seems fairly obvious that you have to make provision for your retirement or work till u drop
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