Share Forum - Discuss JSE shares and join the Investor Challenge

Guys these are just things that pop into my head.

I trade shares via Standard Bank. When dividends are payed out, it is payed out to my trading account. I then immediately buy more shares with it. The share statement will reflect that I received dividends, but in reality I did not take the money to use for day-to-day living. Must I still declare it as income for tax purposes?

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?

Orca the other link does not talk about the working man that receives a salary and then takes that after tax money and buy shares with it. That is why I am asking these questions. The moderators are welcome to combine all these tax questions into a single blog.

Okay so the 30 000 is right out the window as I want to move my funds around between shares, especially when shares take a nice dip.

"The R30k exemption is for capital gains tax, only applies after you've held for 3 years. For less than three years you add the profit of the sale to your annual income when you do your taxes. Then you pay normal income tax."

He, so my profit from the sale of the shares will be taxed at my current tax rate! Dem that means I need even more growth to make a profit. Suddenly buying shares does not seem such a good idea at all.

Does all this mean that if I keep shares for 3 years I will be taxed CGT on amount more than R30 000 plus I will be taxed  my current tax rate because it is seen as income?

I have another question - I am a working man. Will my dividends be taxed as income at my current tax rate?
If I sell my shares is that seen as income and will it be taxed at my current tax rate?

Guys I am new at this so help me right.

Guys, if you buy a share and it goes up that is good, but then if the share starts falling after reaching a nice profit point, you have to sell it to lock in the profit.
Then the tax rule of not keeping the share for 3 years kick in and you are seen as a trader. That means you pay extra tax/CGT or whatever.
Here is my question - how much tax/cgt do you pay because that tax is actually your loss. You have to deduct that from your profits. Further more if you buy a share that goes into profit slowly, yes you are making profit but your capital is locked in for 3 years otherwise you will get this special tax being applied.
So what is the use of buying any share that is even semi volatile? You might make nice profits but your profits must always be more than the tax/cgt deduction for you to make a profit.
That means you have to concentrate on shares that you know will have a good 3 year run. I mean, come on, who knows what a share will do in 3 years time?

But just for clarity as I am not sure - If I buy a share for R10 today and sell it next week at R20, how much will I be punished by SARS?

And while I am on the subject of dividends, with the rand going to the dogs, where can I get a list of companies on the JSE that pay their dividends in foreign currency. I found MMP that pay in dollars but I am looking for a whole list.

Thanks guys. Highly appreciated.

Another question - Excluding property stocks, REITS and ETF's, what else can I buy on the JSE that would give me an income and as I stated, I am not concerned about growth? I just want income as often as possible.

and the last part

http://www.moneyweb.co.za/moneyweb-property/sa-reits-will-investors-benefit