1606
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.