241
Off topic / Re: Live chat
« on: September 15, 2017, 10:59:21 am »
This would only affect SA residents working abroad and not retirees that officially emigrate like we did.
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242
Shares / Re: Cherrypicking & Tapouts
« on: September 06, 2017, 12:35:08 pm »WTF happened to Rhodes?
Rand strengthened by almost 12% and this caused a 20% slide in international turnover. Total turnover increased by 10%. Plus what jaDEB stated above for the coming year.
The same happened to ADI. Turnover up by 25% and it tanked by 6% in minutes. Now well up again.
243
Off topic / Re: Live chat
« on: September 06, 2017, 10:20:16 am »
Hold thumbs for me. I'm on my way to the bank and if things work out its going to change my life forever. I'm talking about BIG money....I'm so exited I can hardly get the flipping stocking over my head.
244
Off topic / Re: Live chat
« on: September 03, 2017, 03:03:18 pm »
Trading stocks is a business. Nobody here is sure of the minimum earnings or investments. Some say €900 to €1350. They did not even look at ours.
245
Off topic / Re: Live chat
« on: September 03, 2017, 12:49:54 pm »
Portugal now open for immigration to South Africans. The only country in Europe to do so.
http://dnm-sadvog.com/en-us/Communication/News/Portuguese-Immigration-Law-New-updates
http://dnm-sadvog.com/en-us/Communication/News/Portuguese-Immigration-Law-New-updates
246
Off topic / Re: Live chat
« on: August 28, 2017, 12:46:19 pm »
Seems new crypto currency BNK is about to open in 15 minutes. It is in a virtual London bank. Hide your money in any currency or virtual currency or but ETF's. https://bankera.com/index.html
Get a free wallet here but server is down due to overload atm. https://spectrocoin.com/
Get a free wallet here but server is down due to overload atm. https://spectrocoin.com/
247
Shares / Re: Calculating CGT on USA shares.
« on: August 22, 2017, 07:33:09 pm »
Update. If you transfer zar to usd the conversion is made. You can hold it in cash with your US broker or bank for as long as you like.
When you make a purchase it must be made in USD as it is your base currency that you employed. Not ZAR as the exchange rate conversion has already been made.
Now when you calculate your gain/loss you must do it in USD and only then do you convert it to zar. As Patrick has said, you can choose the average yearly FX rate or the rate at the date of sale. You can choose what rate is better for tax purposes.
If you choose not to use the ave rate then you have to use the rate at SETTLEMENT and not the TRADE date. This can differ by 1 to 2 %.
When you make a purchase it must be made in USD as it is your base currency that you employed. Not ZAR as the exchange rate conversion has already been made.
Now when you calculate your gain/loss you must do it in USD and only then do you convert it to zar. As Patrick has said, you can choose the average yearly FX rate or the rate at the date of sale. You can choose what rate is better for tax purposes.
If you choose not to use the ave rate then you have to use the rate at SETTLEMENT and not the TRADE date. This can differ by 1 to 2 %.
248
Off topic / Re: Live chat
« on: August 21, 2017, 10:28:20 am »
Bookmark this if you have stocks in foreign currencies. ECB Currency converter for any dates. Used by accountants for taxation.
https://www.bportugal.pt/conversor-moeda
https://www.bportugal.pt/conversor-moeda
249
Shares / Re: Calculating CGT on USA shares.
« on: August 18, 2017, 06:11:22 pm »
Oh dear. Other way round. If the rand weakens then your tax liability increases. My gains increased from €12k to €17k. 
Perhaps I should give my brain a rest and redo it tomorrow. Getting confused now.
Perhaps I should give my brain a rest and redo it tomorrow. Getting confused now.
250
Shares / Re: Calculating CGT on USA shares.
« on: August 18, 2017, 02:50:43 pm »
If this is also applicable to Portugal which I think it is (best international practice) then my tax bill of €12k will be zero. 
My gain was €46k and with this it would be a loss of €9k. A R3 change from buy and sell makes a huge difference.
My gain was €46k and with this it would be a loss of €9k. A R3 change from buy and sell makes a huge difference.
251
Off topic / Re: Live chat
« on: August 18, 2017, 02:03:55 pm »
Moon is our tax man. Platinum guy as well.
252
Shares / Re: Calculating CGT on USA shares.
« on: August 18, 2017, 02:00:20 pm »
I posed the question to Just One Lap and an unsigned reply came back within 3 minutes. The person said that the investment in $ must be converted to zar. ie, the base cost, purchase cost and gain must be converted to zar.
Then I found the SAIT website that explains how the Paragraph 43 of the 8th schedule works and sent it to them. Not heard back as I'm sure they are looking into it and we will have a podcast on this soon.
http://www.thesait.org.za/news/309334/The-Tax-Implications-of-Currency-Gains-made-on-Foreign-Investments-.htm
Then I found the SAIT website that explains how the Paragraph 43 of the 8th schedule works and sent it to them. Not heard back as I'm sure they are looking into it and we will have a podcast on this soon.
http://www.thesait.org.za/news/309334/The-Tax-Implications-of-Currency-Gains-made-on-Foreign-Investments-.htm
253
Shares / Re: Calculating CGT on USA shares.
« on: August 17, 2017, 09:38:35 pm »
https://www.moneyweb.co.za/investing/offshore-investing/the-tax-implications-of-emigrating/
Question:
Will capital gains on my offshore investments, denominated in US dollars, be calculated on (a) the pure capital gain in dollar
terms only multiplied by the current exchange rate or (b) the pure capital gain plus any exchange rate depreciation since the
investment was made?
Answer:
On the question of your shares, while the rules that apply to the calculation of capital gains tax on the disposal of local currency
assets are relatively well understood, they are less so when it comes to the disposal of foreign currency assets. Such a disposal is
basically subject to two rules:
Firstly, in the case of a natural person or non-trading trust disposing of an asset in a foreign currency after having acquired that
asset in the same currency, the capital gain or loss will be determined in the relevant foreign currency, followed by a conversion
to rand.
Example 1 (natural person or non-trading trust):
Base cost: 100 Microsoft shares purchased at $1 = $100
Proceeds/deemed disposal (ceasing to be a resident is treated as a deemed disposal): 100 Microsoft shares at current market price
of $2 per share = $200.
The gain is therefore $100. This will be converted to rand at either the spot or an average exchange rate, which will equate to
the rand gain or loss.
However, in all other instances the local currency is to be used to translate both the proceeds and the base cost. This applies
to disposals by a company or trust carrying on a trade. It also applies where a natural person or non-trading trust disposes of
an asset in a foreign currency, where the currency of expenditure and currency of proceeds are not the same.
Therefore the base cost as well as the proceeds will have to be converted to rand and the difference will equate to the capital
gain or loss. The exchange rate fluctuations from the date of acquisition to the date of disposal will therefore be taken into
account.
Example 2 (company or trust carrying on a trade):
Base cost: 100 Microsoft shares purchased at $1 = $100. This will be converted to rand at either the spot or the average exchange
rate, which will equate to a rand base cost.
Proceeds/Deemed disposal (ceasing to be a resident is treated as a deemed disposal) –
100 Microsoft shares at current market price of $2 = $200.
Question:
Will capital gains on my offshore investments, denominated in US dollars, be calculated on (a) the pure capital gain in dollar
terms only multiplied by the current exchange rate or (b) the pure capital gain plus any exchange rate depreciation since the
investment was made?
Answer:
On the question of your shares, while the rules that apply to the calculation of capital gains tax on the disposal of local currency
assets are relatively well understood, they are less so when it comes to the disposal of foreign currency assets. Such a disposal is
basically subject to two rules:
Firstly, in the case of a natural person or non-trading trust disposing of an asset in a foreign currency after having acquired that
asset in the same currency, the capital gain or loss will be determined in the relevant foreign currency, followed by a conversion
to rand.
Example 1 (natural person or non-trading trust):
Base cost: 100 Microsoft shares purchased at $1 = $100
Proceeds/deemed disposal (ceasing to be a resident is treated as a deemed disposal): 100 Microsoft shares at current market price
of $2 per share = $200.
The gain is therefore $100. This will be converted to rand at either the spot or an average exchange rate, which will equate to
the rand gain or loss.
However, in all other instances the local currency is to be used to translate both the proceeds and the base cost. This applies
to disposals by a company or trust carrying on a trade. It also applies where a natural person or non-trading trust disposes of
an asset in a foreign currency, where the currency of expenditure and currency of proceeds are not the same.
Therefore the base cost as well as the proceeds will have to be converted to rand and the difference will equate to the capital
gain or loss. The exchange rate fluctuations from the date of acquisition to the date of disposal will therefore be taken into
account.
Example 2 (company or trust carrying on a trade):
Base cost: 100 Microsoft shares purchased at $1 = $100. This will be converted to rand at either the spot or the average exchange
rate, which will equate to a rand base cost.
Proceeds/Deemed disposal (ceasing to be a resident is treated as a deemed disposal) –
100 Microsoft shares at current market price of $2 = $200.
254
Shares / Re: Calculating CGT on USA shares.
« on: August 17, 2017, 06:33:41 pm »
Never mind. Found out for myself.
For an individual investor like us.
If you buy 100 Microsoft shares for $1 each and sell them 3 years later at $2 then your gain is $100.00.
Your "buy" and "sell" must be calculated in $ terms and then the FX rate at the "sell" date must be used to convert it to the zar gain.
For companies and trusts.
If they buy 100 Microsoft shares for $1 each then the base cost must be converted to zar on the date of the purchase.
When they sell they must convert the $ to zar again. The zar difference will be their gain.
So it seems that the appreciation or depreciation of the currency will only affect companies and trusts.
This may be a huge knock for some if I read it correct.
For an individual investor like us.
If you buy 100 Microsoft shares for $1 each and sell them 3 years later at $2 then your gain is $100.00.
Your "buy" and "sell" must be calculated in $ terms and then the FX rate at the "sell" date must be used to convert it to the zar gain.
For companies and trusts.
If they buy 100 Microsoft shares for $1 each then the base cost must be converted to zar on the date of the purchase.
When they sell they must convert the $ to zar again. The zar difference will be their gain.
So it seems that the appreciation or depreciation of the currency will only affect companies and trusts.
This may be a huge knock for some if I read it correct.
255
Shares / Calculating CGT on USA shares.
« on: August 17, 2017, 04:40:56 pm »
This sprung into my head today. When selling your US shares do you take exchange rate depreciation/appreciation into account or just use the gain in $ and multiply it by the bank rate on the day you sell?
It can vary by a huge amount.
It can vary by a huge amount.