« previous next »
Pages: 1 2 3 [4] 5 6 ... 20

Author Topic: Tax  (Read 266822 times)

Moonraker

  • Hero Member
  • *****
  • Posts: 1095
  • Karma: +31/-0
    • View Profile
Re: Tax
« Reply #45 on: July 15, 2013, 07:01:25 pm »
gcr, did you see my post re: your UT base cost grievance ?

http://www.shareforum.co.za/shares/tax/msg1251/#msg1251
Logged

gcr

  • Hero Member
  • *****
  • Posts: 1008
  • Karma: +28/-1
    • View Profile
Re: Tax
« Reply #46 on: July 16, 2013, 09:39:12 am »
Quote from: Moonraker on July 15, 2013, 07:01:25 pm
gcr, did you see my post re: your UT base cost grievance ?

http://www.shareforum.co.za/shares/tax/msg1251/#msg1251
Yup did thanks and have amended my figures for SARS accordingly
Logged
Not everything that counts, can be counted, and, not everything that can be counted counts - Albert Einstein

Moonraker

  • Hero Member
  • *****
  • Posts: 1095
  • Karma: +31/-0
    • View Profile
Re: Tax
« Reply #47 on: July 16, 2013, 01:23:19 pm »
When SARS has accepted your supporting documents (after audit), you will receive a letter notification (get it in efiling under the SARS correspondence section). Mine just received looks like this ...

Logged

Orca

  • Hero Member
  • *****
  • Posts: 2280
  • Karma: +54/-3
    • View Profile
Re: Tax
« Reply #48 on: July 21, 2013, 03:55:33 pm »
Delusionsofgrandeur has a problem now. He closed his FNB account and moved overseas. Then he decided to send money on a regular basis back to SA and had a family member open an account in that family members name and Delusion has paid R200k into it. Now it gets tricky as he also wants to trade it.

Firstly, his family member will be liable for tax on any interest on the R200k for his own account.
He can trade the money if his family member hands in a Power of Attorney letter allowing Delusion to trade it.
Now once again, any gains he makes will be for his family members account tax wise.
When he decides to come back to SA and his family member transfers everything into Delusion's new account, this family member will in effect be making a donation to Delusion and Delusion will have to pay donation tax.

My reply to him would be to reopen his old account as it should still be available and FICA'd with the help of his family here. Then he will make life much easier for himself and his family member.

Am I correct?

Logged
I started here with nothing and still have most of it left.

Orca

  • Hero Member
  • *****
  • Posts: 2280
  • Karma: +54/-3
    • View Profile
Re: Tax
« Reply #49 on: July 21, 2013, 06:10:30 pm »
While I'm on the subject of Donations Tax. A while back when I was more ignorant on tax matters, I thought I was clever by donating half my stocks to my wife to divide my tax burden. This can be done tax free and even my broker was about to transfer the stocks when I found out that it would not work.
According to SARS, any profits made on this donation will still be for my account. Not my wife's.
Logged
I started here with nothing and still have most of it left.

Orca

  • Hero Member
  • *****
  • Posts: 2280
  • Karma: +54/-3
    • View Profile
Re: Tax
« Reply #50 on: July 24, 2013, 07:51:51 pm »
Delusion got Delusioned and ducked.
Logged
I started here with nothing and still have most of it left.

Orca

  • Hero Member
  • *****
  • Posts: 2280
  • Karma: +54/-3
    • View Profile
Re: Tax
« Reply #51 on: July 25, 2013, 11:12:18 am »
Just received a quote from a tax accountant to reconcile my trading since 2009. Came to R6 000.00.
Voluntary Disclosure done but no reply from SARS yet.
Logged
I started here with nothing and still have most of it left.

Patrick

  • Administrator
  • Hero Member
  • *****
  • Posts: 2552
  • Karma: +47/-2
    • View Profile
Re: Tax
« Reply #52 on: July 25, 2013, 01:14:55 pm »
Not too bad considering how often you were selling.
Logged

Bundu

  • Full Member
  • ***
  • Posts: 181
  • Karma: +3/-0
    • View Profile
Re: Tax
« Reply #53 on: July 25, 2013, 01:36:05 pm »
Quote from: Orca on July 25, 2013, 11:12:18 am
Just received a quote from a tax accountant to reconcile my trading since 2009. Came to R6 000.00.
Voluntary Disclosure done but no reply from SARS yet.

.... and surely you can deduct the R6k from your income over that period
Logged
« Last Edit: Tomorrow at 06:13:55 PM by Bundu »

Orca

  • Hero Member
  • *****
  • Posts: 2280
  • Karma: +54/-3
    • View Profile
Re: Tax
« Reply #54 on: July 25, 2013, 02:40:22 pm »
Yes, that R6k is peanuts considering my rough estimate of the tax will be around R400k. :wall:
Logged
I started here with nothing and still have most of it left.

Orca

  • Hero Member
  • *****
  • Posts: 2280
  • Karma: +54/-3
    • View Profile
Re: Tax
« Reply #55 on: July 25, 2013, 06:47:53 pm »
For those that don't have a pension fund like me and use their investments for income. It just hit me. A dodo as I am with tax.
I was under the stoopid impression that if you withdraw R30k pm then as a "trader" you must add that R30k as income. Not so.
It is the diffs between the base cost and the present price when you sell and it is a fraction of the R30k that I thought it was.
Will do some more sums this weekend using Moon's video and post back. Thanks Moon.
Logged
I started here with nothing and still have most of it left.

Orca

  • Hero Member
  • *****
  • Posts: 2280
  • Karma: +54/-3
    • View Profile
Re: Tax
« Reply #56 on: July 26, 2013, 01:23:38 pm »
Very interesting. To me anyway.
Taxable income = [number of shares sold X price] minus [number of shares sold X base cost]

Withdraw R30k pm for one year = R360k
Taxable income = R93 780.00 which is under the threshold so no tax.

Had you invested R2m in a hypothetical 60% pa performer or 5%pm and withdrawn R30k pm then after one year, your portfolio would grow to R3.114m.

Logged
I started here with nothing and still have most of it left.

Orca

  • Hero Member
  • *****
  • Posts: 2280
  • Karma: +54/-3
    • View Profile
Re: Tax
« Reply #57 on: July 26, 2013, 07:32:09 pm »
Eish, and that is not even taking divies into the equation. :)
Logged
I started here with nothing and still have most of it left.

Bundu

  • Full Member
  • ***
  • Posts: 181
  • Karma: +3/-0
    • View Profile
Re: Tax
« Reply #58 on: July 26, 2013, 07:41:38 pm »
true, but by the time the dividends reach you, SARS has already taken their undeserved share of 15%
Logged
« Last Edit: Tomorrow at 06:13:55 PM by Bundu »

Nivek

  • Sr. Member
  • ****
  • Posts: 295
  • Karma: +6/-1
    • View Profile
Re: Tax
« Reply #59 on: July 27, 2013, 07:55:42 am »
Quote from: Orca on July 26, 2013, 01:23:38 pm
Had you invested R2m in a hypothetical 60% pa performer or 5%pm and withdrawn R30k pm then after one year, your portfolio would grow to R3.114m.

Agreed, now can you tell me which will be next years 60% share :LHST:
Logged
Pages: 1 2 3 [4] 5 6 ... 20
« previous next »