Capital Gains: 10 most popular posts
Transfers from spouse & car sales
Posted 17 February 2021
I have 2 questions
Question 1: My wife sometimes transfers some money into my account to pay a certain bill. The amounts total less than R100,000, it is never anything above that. Do I need to declare this under the TaxTim section question "Did you earn or receive any other money that you think should NOT be taxed?"? Will I be taxed on that amount?
Question 2: I sold my car and bought another car. Do I need to declare the amount I received after settling the remaining inst...Read more →
Are Share Options taxed on date of them vesting (eligible but not exercised) or only when exercised?
Posted 11 February 2021
I have the option to participate in an employee share option scheme, but I'm a little unclear on the tax implications. I high-level view is as follows:
Options will be granted at an agreed price (e.g. R1)
The options will vest over a four year period (annually)
Once vested, I would be able to exercise the right to purchase and retain shares or sell to a willing buyer because the company is private, it may not always be easy to find a willing buyer (e.g. At the end of each year), and I may also not have funds available to purchase the shares myself. My main question is around when would I become liable for tax?...Read more →
Declaring the cost of building a rental property
Posted 27 March 2020
I had rental income in the 2019 tax year, I converted part of my house into a 1 bedroom apartment as well as converting my old garage into another, so I currently have 2 flats now on the property. The apartments represent around 34% of the squares of the buildings on the property. Should I then declare 30% of the costs of the property (I.e.: Interest, Rates & Taxes etc as the costs) as the costs?
Also, where do I declare the cost I had incurred in building the units? (Does it come und...Read more →
Married in Community of Property
Posted 30 October 2019
My wife and I got married last year on the 26th of March 2018. We got married in community of property, so when it comes to tax what I would like to understand is whether we will both need to do our tax differently this year and also, I would like to find out what would the implications on our tax returns be like?
Tax on shares
Posted 19 September 2019
I received a once-off payment for shares in November 2018. I then opted to pay tax on the shares before the payments was made to me. Therefore the tax was already deducted before any monies were paid to me. I am now uncertain how to enter this in my 2019 tax return. Can you please advise %u2013 do I need to submit this income in my 2019 tax return and if I must, what figures must I submit in terms of the share payment made to me in this tax year?
CGT for Companies
Posted 26 May 2019
Is it correct that for private individuals Capital Gains Tax (CGT) is levied on net gain and of that, 40% is taken into account and that amount is added to individual's taxable income for that specific tax year. How does it work for companies or Trusts, is 100% of net CGT taken into account or what?
Tax when selling the shares
Posted 17 February 2019
I previously received an opportunity to invest in shares through my company. I invested a portion of my income every month and every six months shares were purchased on my behalf at a 14% discount. The shares are US based and tax was deducted locally off my payslip. I would now like to sell off my shares, but I don't fully understand how I'd be liable for tax. We were able to sell them as soon as we had them. They were part of an ESPP (Employee Stock Purchase Plan) and were purchased by deduction from salary and taxed (nothing given out-right). On the platform, they do seem to be classified as short/long term but I think this is geared up for US rules of capital gains....Read more →
Bitcoin and Tax
Posted 8 January 2018
Are the earnings from Bitcoin taxable?
Full amount of shares paid out or profit?
Posted 18 July 2017
I had MTN Zakhele shares which reach maturity and were paid out in December 2016. Do I include the amount that was paid into my bank account or the difference between what I paid for the shares vs what I sold them for?
This query relates to question 6431 "Please enter the total amount received from the sale here. This is known as the proceeds." in the Capital Gains section.
Rental expenses, capital or running expenses?
Posted 10 July 2017
Please assist on the below as I cannot find additional
information within the current questions on your blog:
While not a monthly expense - it is mentioned that any expenses incurred in
earning the rental property income can be set against the rental income for
tax purposes. Does the following apply to that reasoning:
1. Installation of Prepaid electricity meter (about R1400)
2. Separating the electricity flows for sectioning off the electricity
for the rental portion of the property to the main house (we only renting...Read more →
Provisional Tax on property sold
Posted 3 July 2017
I sold property in March 2017 and it's an income earning property. Do I need to prepare a provisional tax return in August? Will I just include profits on the property?
Which costs are deductible prior to receiving rental income?
Posted 17 April 2017
In respect of a second property that one rents out, starting off, can one deduct the following for personal income tax:
(1) Bond transfer fees and registration costs;
(2) Costs incurred on repairs to the property in the month prior to receiving the 1st rental for the property?
Capital gains tax or income tax - forex trading
Posted 9 April 2017
What's the difference between capital gains tax and income tax? Which of the two does retail forex trading fall under?
Capital Gains Tax: Two
Posted 5 April 2017
I bought a house in December 2013. In November 2015, I bought a second house and it was registered in my name, February 2017. The intention was to let out the first house, and we moved March 2016, with the first house now being empty. However, in the meanwhile, I decided to sell the first house. I haven't had any tenants staying in the first house, it has been empty for a month now. We stayed in the first house since I bought it, for over two years. Will I be liable for capital gains tax, or wil...Read more →
Tax clearance certificate for a non-resident
Posted 5 April 2017
A non South African citizen brought money into South Africa, bought a house and sold it recently. She needs a tax clearance certificate. How does she get it as she has no tax number?
CGT on primary residence (if it has been let out - also my only residence)
Posted 4 April 2017
What CGT would I be liable for if my primary residence is my only residence - but rented out?
Do I get Tax back on a loss from selling shares?
Posted 15 March 2017
I bought shares in a private company (cost me 100k). We have now sold the company in full and my portion of the payout is 80k (i. e. 20k loss). Can I claim tax back on this amount? And if so, what do I need to do it?
Inclusion of rental expenses in CGT calculation
Posted 24 February 2017
If I earned no income from a rental property (which I rented out for about 7 years) and sold it in the same year, can I still deduct the expenses (levies, interest, rates) normally incurred from income, or should I add these costs to the Selling cost or Base cost to reduce capital gains tax?
Which base cost to use when calculating CGT?
Posted 24 February 2017
I bought some Satrix Divi through the Satrix Investment Plan in Aug 2007. All dividends were reinvested by Satrix, ie every quarter more shares were bought. In July 2011, I transferred all of my "units" to an online broker and made no further purchases. For the first few months, my statements from that broker show a base cost per share of 0. Suddenly, in the March 2012 statement, it lists a cost per share, which appears to be the share price on March 16 2012. I have just sold these share...Read more →
Sale of rental property
Posted 17 February 2017
My son works abroad, but he owns a rental property in South Africa which he sold recently. Is he required to pay capital gains tax on the proceeds?
Tax implications on selling my second property?
Posted 13 February 2017
What will my capital gains tax be if I received a payment of R680 000 upon selling my second property?
CGT and new retirement fund laws
Posted 8 February 2017
Non of the tax calculators include Capital Gains tax
What is the impact of a Capital Gains Tax on the allowable RA deduction?
Home office and CGT
Posted 8 February 2017
I work from home and would like to find out what will the cgt implication be when I sell my primary residence and is it worth it for me to continue to deduct my office space as an expense?
Does married in commuity of property mean a partnership?
Posted 7 February 2017
We are married in community of property does this mean this is a partnership for CGT purposes?
Accumulating overseas dividends do I pay tax on these in SA?
Posted 6 February 2017
If the dividends from overseas shares are accumulated back into the fund in the UK, do I need to pay tax on them in SA even if I am not having them paid out to me. In the UK I do not have to pay tax on them if they are accumulated.
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