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Messages - Orca

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1606
Shares / Re: Tax
« on: February 09, 2014, 09:32:23 pm »
ORCA, dem, that really is a mouthful! Thanks, but I'm still a bit lost.

1. In a nutshell, are you saying that as a man that works for a salary, I would deduct all costs for having the shares from my total profit,  then if the 3 year rule applies, deduct a total of R30 000 from my total remaining profit and then what ever is left, I add 33.3 % of that to my income statement for tax purposes?

2. What if my tax rate is 40% or is the most you will pay 33.3%?

3. I'm not sure if this was clearly answered - The R30 000 - If I have shares in 10 companies and sell them all in one go, after holding for 3 years, is the R30 000 on the profit per company or on all the companies profit combined?

No. You will need your Account analysis from your broker and use the amounts in the totals as they already have the costs deducted.
If you don't get this Account analysis report, then you must total all your Contract Notes "Due to you" for the year. The Due to you will already have the costs deducted.

From your total profits for the year, you can deduct R30k only. A third of this after your R30k deduction, you must add to your other income.
This is only for CGT and not applicable to trading.

1607
Off topic / Live chat
« on: February 09, 2014, 09:12:04 pm »
Must think of a method to inject viagra into my stocks.

1608
Shares / Re: Stock trading and investment buying strategies.
« on: February 09, 2014, 09:08:34 pm »
I don't trade anymore so only use Daily charts and only signals that affect my portfolio. All my above charts are long term. As Snakepit uses shorter term, he is referring to intraday or short term trades. Both are equally effective depending on your timeframe.
 

1609
Off topic / Live chat
« on: February 08, 2014, 07:57:25 pm »
Sies Orca. Pepper in your mouth.

1610
Shares / Re: Stock trading and investment buying strategies.
« on: February 08, 2014, 07:36:06 pm »
Update on OMN. One day after that text book Morning Star trend reversal confirmation she made 1.22% gain. If markets allow, I will target 22000 as it is the high and a round number that may make resistance. It may break this with momentum to 22500.

1611
Shares / Re: Stock trading and investment buying strategies.
« on: February 08, 2014, 07:27:19 pm »
Update on PNC. This Morning Star was not perfect in Snakepit"s books but they do differ somewhat in shapes and sizes. The second candle closed too low and the tails were too long but the third candle"s close made it for me. It closed above the halfway mark of the 1'st candles body.
In 2 days since my call she made about 7% gains. This might be enough for some traders to take profit and she may turn red on Monday for a while.
With R400k exposure you would have just under R28K profit. Good enough for some but my target is 2400.
It will go higher for investors if markets allow but if you trading, then time decays your profits. You have after all borrowed most of the R400K and need to pay the interest.





1612
Shares / Re: Stock trading and investment buying strategies.
« on: February 07, 2014, 07:53:08 pm »
Here is one of mine. Stock is PNC.

1. After this red large red candle, the amateurs sold off big time and this caused a gap down.
2. Now amateurs start buying thinking that it has bottomed and push it up a bit.
3. Amateurs buy thinking it has gone too low.
4. Here is a Doji candle. Buyers and sellers are equal. Professionals look for this and await for a signal to buy.
5. Up it goes and and a buy signal is born.

This one really worked. Up big time after dropping while the ALSI was gaining. I must listen to me more often.

1613
Shares / Re: PNC
« on: February 07, 2014, 07:41:09 pm »
What a great comeback. That Morning Star candle formation actually worked. Pity I did not choose it in the competition. She must have mulled quite a while over my reprimand above.

1614
Shares / Re: Emerging Markets - not all are bearish !
« on: February 07, 2014, 07:32:44 pm »
So I can rest in Portugal in peace.  :TU:

1615
Off topic / Live chat
« on: February 07, 2014, 06:09:31 pm »
Geeze Patrick. You got a rise there. jaDEB needs viagra.

1616
Shares / Re: Tax
« on: February 07, 2014, 06:01:12 pm »
Part 2. (tax is fun)ny.
If you traded your stocks then here is a simple method to work out your tax.

After tax year close, your broker will send you an account holdings for the tax year. It will have a summary of all your trades.
Cost of Sales. E filing will ask for this amount.

COS = Opening stock value at cost. Plus purchases at cost. Less closing stock at cost.

Opening Stock will be in shares and not Rand value. This you must work out yourself. From the above post. Work out your base cost and multiply it by the amount of shares. Do this with all your shares shown in Open Stock. Open Stock are shares bought the previous year and brought forward to this year.
Do the same with Closing Stock to get the Rand value at your base cost.

Now you have your Cost of Sales. From this you must deduct Sales. E filing will ask for Sales and do the sum for you. The doc I referred to above will have Total Sales in Rands and will include costs. Use this amount.

Now you can deduct internet costs. (I deducted R1900.00 with no problem). Forget about that little Office space costs as it gets too complicated.
If you have a gain, the Source Code is 2514.

Done. All business owners must use this method.

Tip.
Make a note in your file as to this years Closing Stock Value as it will be next years Opening Stock Value. (Balance Sheet).Will save you stacks of time.

If in doubt, ask Moon. He taught me all this stuff.






1617
Shares / Re: Today's Outlook
« on: February 07, 2014, 05:09:27 pm »
The markets like it. :) The unusual cold weather in January seems to be the culprit.

1618
Shares / Re: Tax
« on: February 07, 2014, 02:58:45 pm »
You deduct the Base Cost of the stock you sold from the "Due to you" amount. This will be your gain. If you held it for 3 years or longer, you can deduct R30k from this gain. From this, you add 33.3% to your income. That's it.
To work out your Base Cost I use the weighted average method.
Add all the "Due from you" amounts from the Contract Notes Each stock separately.
Divide this by the number of shares you hold. This is the Base Cost. By using the Due from/to you amounts, you need not work out the costs separately.
Tips.
Keep a flip file for each share.
Print out your Contract Notes and file them. SARS most likely will want them so have them in a folder on your computer as well. You can attach them to e filing.
Keep an updated page of the Base Cost and share movements. SARS will want this as well. I do mine in Excel.
At year end you will get an Account Holdings Analysis. File it as this is the doc that makes your tax simple.

These files are very important for tax and should you expire, it will simplify things for your spouse or kids.


1619
Shares / Re: What is the use?
« on: February 07, 2014, 11:38:54 am »
In my case, I had 2 trading businesses. One was a coffee shop and the other was stock trading as I had not held the stocks for 3 years yet.
So this means that I had 2 incomes and the profits from both must be combined.
A loss from one can be deducted from the gain of the other.


1620
Shares / Re: Stock trading and investment buying strategies.
« on: February 07, 2014, 11:11:26 am »
I don't trade anymore but still use technicals for buy signals and to check when my stocks that are in a downtrend bottom out and turn.
It is important to combine these candle patterns with other indicators like RSI, MACD, MA's, volumes etc for further confirmation.
I knew that the 2 stocks were oversold so only used volumes. Thin volumes cause volatility and decieving patterns.
Technicals are short term and market sentiment prevails.

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