Do your Tax with TaxTim and WIN R10,000  More info   T&C's apply


Capital Gains and Losses: which source codes to use?

Use the correct CGT source code in your annual tax return



In the Capital Gains section of the annual tax return (ITR12), SARS requires you to insert the relevant asset source code for the item you have sold.  However, when you sell financial investments (e.g shares)  the financial institution issues an IT3(c) which shows the profit/loss source code (i.e4250/4251) and not the asset source code.  This causes confusion for taxpayers, who think these codes  on the IT3(c) are the ones to use. However, 4250/4251 (local profit/loss codes) and 4252/4253 (foreign profit/loss codes) are not the correct source codes to use in the Capital Gains section of your ITR12.

DO NOT USE SOURCE CODE 4250 (GAIN: LOCAL)

Use one of these instead:

6506 - GAIN: Financial instruments – Listed, including assets of which prices are regularly published in newspaper 

6508 - GAIN: Financial instruments – Unlisted

6520 - GAIN: Financial instruments – Crypto Asset(s) 

For a full list of local asset source codes, please click here.

 

DO NOT USE SOURCE CODE 4251 (LOSS: LOCAL)

Use one of these instead:

6507: LOSS: Financial instruments – Listed, including assets of which prices are regularly published in newspaper 

6509: LOSS: Financial instruments – Unlisted 

6521: LOSS: Financial instruments – Crypto Asset(s)

For a full list of local asset source codes, please click here.

 

DO NOT USE SOURCE CODE 4252 (GAIN: FOREIGN)

Use one of these instead:

6534: GAIN: Listed Financial Instruments -excluding Cryptocurrency 

6536: GAIN: Unlisted Financial Instruments -excluding Cryptocurrency 

6546: GAIN: Financial Instruments - Cryptocurrency 

For a full list of foreign asset source codes, please click here.

 

DO NOT USE SOURCE CODE 4253 (LOSS: FOREIGN)

Use one of these instead:

6535: LOSS: Listed Financial Instruments -excluding Cryptocurrency 

6537: LOSS: Unlisted Financial Instruments -excluding Cryptocurrency 

6547: LOSS: Financial Instruments - Cryptocurrency 

For a full list of foreign asset source codes, please click here.



This entry was posted in TaxTim's Blog and tagged , , . Bookmark the permalink.

10 most popular Q&A in this category




Submit your tax return right here!
Get started

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Answer simple questions about your incomes and expenses. TaxTim does the rest. Just click click, submit.

Make tax easy

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.