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Shares / Re: TAX Efficient options for cash
« on: February 04, 2020, 11:41:33 am »
I'm considering to "swap" my current property for a smaller one and invest the difference from the sale/purchase. Therefor I've also been thinking about this conundrum.
My one idea is to make a fixed deposit, at the bank, that will end at the end of the tax year. According to SARS the first R23800 from interest is exempt from tax and therefor my deposit shouldn't exceed an amount that would earn more. The rest, if any, will have to go to ETF's or shares. At the end of the year the interest will be paid at the start of the new tax year into my tax free investment and I'll repeat the process with a new fixed deposit.
Thoughts will be appreciated.
My one idea is to make a fixed deposit, at the bank, that will end at the end of the tax year. According to SARS the first R23800 from interest is exempt from tax and therefor my deposit shouldn't exceed an amount that would earn more. The rest, if any, will have to go to ETF's or shares. At the end of the year the interest will be paid at the start of the new tax year into my tax free investment and I'll repeat the process with a new fixed deposit.
Thoughts will be appreciated.