Capital gains

  Written by Marc   Posted 30 September 2015

I just switched some of my unit trusts and made a capital gain of R33000. I figured there is tax applicable to this. But how does this affect my portfolio? Does the capital gain go back into the unit trust to make more money for me?

Once I did the switch to the better performing unit trust, my portfolio total reduced greatly, while I expected to see a huge growth. Thanks,

Capital Gains Tax - capital growth before tax was implemented?

  Written by Marc   Posted 30 September 2015

I owned a piece of land. Acquired in 1998 for R60 000. The land was sold in 2014 (this tax year) for R300 000. The agent fee for selling was 5%. I know the Capital Gains Tax was only implemented after acquisition. Please advise whether the calculation for capital gains tax is able to take into account some appreciation in value between 1998 and the year when the tax came in.

Married couples and CGT on sale of primary residence

  Written by Evan   Posted 28 September 2015

If a couple is married in community of property, does the Capital gain on the sale of their primary residence get split between the two on their tax returns (if the CGT profit is over R2 mil)?
i.e, do they each pay 50 % tax on the profit?

Request for Supporting Documents but I have not been employed for 3 years

  Written by Marc   Posted 27 September 2015

SARS is asking for supporting documents related to my tax return but I have been unemployed and living abroad for three years! I don't have any of the documents they are requesting. I still pay provisional tax and submit that tax return dutifully. I read that I must swear an affidavit at a police station but I am currently not in the country and won't be back for several months - they need these supporting documents in 21 days. What must I do? (I did email them, asking them what to do, but they ...

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Do I qualify to give an it3 certificate to an shaare holder?

  Written by Marc   Posted 22 September 2015

I started a small company with a friend a year ago, she recently needed money and although our company is not profitable yet I offered to buy her out at double her original investment. I paid her in cash. She is requesting a IT3 tax certificate for the money I paid her, how do I do this?

Clarify how to enter rollover of CGT/loss.

  Written by Marc   Posted 22 September 2015

What amount must I enter for the rollover from last years CGT loss. During the 2014 tax year I dis-invested a foreign investment. The original base cost was R1,540,000. 00. The amount in rand that I received back was R1,080,318. 00. This was easy to enter into that year's ITR12. But the current year, I do not know what amount to enter as a roll over or which code to use.

Home Office property business expense calculations?

  Written by Marc   Posted 22 September 2015

We run a small hair salon from home for my wife, she does business as a sole-proprietor and the salon is her sole income source. I understand that we can deduct for ease of explanation 10% (amount of space occupied by the salon in relation to the whole property) from all rates and taxes, electricity etc. I am unsure about the interest/rent piece. Can the salon pay "rent" or can you just subtract 10% of the interest on the bond as business expense (bond is in my name). I've also read that deducting this piece as a business expense now can influence your Capital Gains Tax waiver amount when selling the property later on, is this the case?...

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What is the % of the profit payable by a natural person

  Written by Marc   Posted 17 September 2015

I used the tax calculator, and according to the calculations, tax is only payable on 33. 3% of the profit. However, in the SARS guide to capital gains tax, it states that a the portion which a natural person would be taxed on, is 25%. (this is concerning fixed asset sold, not a primary residence. ) Is the 33. 3% correct?

How is tax on share options calculated after death?

  Written by Marc   Posted 14 September 2015

My dad passed away in Aug 2013 and had a bunch of share options that went into his estate. We sold the share options in Dec 2014, and the estate was wound up and distributed in Feb 2015. However, they taxed the share sale at the maximum tax rate. Should the share sale go into the 2013/2014 tax year when he died, or should it be in 2014/2015 as that's when the sale was actually made? Basically, I want to check if we can claim back the tax paid as it was his only earning in 2014/2015.

CPT payment on money held for 3rd party.

  Written by Marc   Posted 9 September 2015

I have a parent whom gave me money a couple of years back to place in an investment in my name. Recently the entire investment was cashed out and transferred back to said parent. I now have been issued with and IT3(c) reflecting this. My questions are as follows:

1) Though it is not stated on the IT3(c), do I need to pay CPT on the proceeds (SARS code 4205)?
2) If I need to pay CPT, as this money did not belong to me (though the investment was in my name, I did not derive any benefit from it), is there a way in which the CPT can reflect against the party whom the money belonged to?...

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How can I go back to changing my answer for capital gains if I don't have the option?

  Written by Marc   Posted 8 September 2015

I need to change my answer to capital gains that I gave, but the problem is I can't go back to the capital gains sections. How do I go back to it?

Tax on local based foreign currency accounts

  Written by Marc   Posted 3 September 2015

How is tax caculated on a local foreign currency account. Example: Savings of $100. Worth R1000 but worth R1200 due to currency changes at end of year. And also interest of R50.

Please advise on inheritance tax and interest income tax.

  Written by Marc   Posted 2 September 2015

I am receiving R 800 000 from my uncle, as part of an inheritance. Will I have to pay tax on this. I would like to invest it where I will receive a monthly interest that I can use, will I be taxed on this monthly amount. If so how much?

Can not afford to pay my tax.

  Written by Marc   Posted 30 August 2015

I have to pay capital gains tax of R200000. I can not pay this amount. What must I do?

Freelancer with multiple sources of income, what sort of tax do I register for and how do I sumbit?

  Written by Marc   Posted 27 August 2015

I am a freelancer working in the film industry. As such I have have periods of consistent work with a production company for a number of months, but also gain smaller amounts of income from private work on the side. Giving short courses and doing small corporate or private videos and edits. I am not registred as company and do all work as a private individual. How do I divide up my income, to sumbit for my tax return?
And what type of tax-payer would I register as?

This is my fir...

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Refund on Dividends Withholding tax?

  Written by Marc   Posted 24 August 2015

I have twins and have set them up with unit trust investments in their own name. The distributions from the trusts are fully reinvested. However the trusts pay out a mixture of interest and dividends etc. On the dividends can I submit tax returns for them to claim back the dividend withholding tax. The interest and capital gains portions are below annual limits. They have no other income as they are not working.

Income tax return 2015

  Written by Marc   Posted 20 August 2015

I submitted two provisional tax returns for capital gains tax for 2014/2015. Now I want to submit my annual tax return (ITR12). I already have an IRP5 from my employer. What do I do with the provisional tax information? Do I include it on my annual tax return or what? Please advice

Capital Gains on joint ownership of property where only one person is the primary resident.

  Written by Marc   Posted 20 August 2015

I am joint owner (50%) of a property with my son. He is the primary resident, I am not. If we sell the property, how is the Capital Gains Tax calculated? The gain will be way below the threshold of gain of a primary residence.

Is the sale of an old house & purchase of a new house show on my tax return?

  Written by Marc   Posted 19 August 2015

If I sold my old house for R830,000 & bought a new house for R1,150,000 do I need to inform SARS of this?
I did this in order to move closer to my place of employment.

Where did I fill this codes IT3B, T3C, IT 3(b), & IT 3(C)

  Written by Marc   Posted 18 August 2015

What is a difference between IT3B, T3C, IT 3(b), & IT 3(C)

Tax implications on unit trust for a new born child

  Written by Evan   Posted 17 August 2015

Hi Tim
What are the tax implications if I have a unit trust fund for my child. Do I need to disclose the interest and capital gain on sale in my tax return? Thank you

Are vehicle repayments tax deductable for a sole-proprietor?

  Written by Marc   Posted 17 August 2015

I am a sole proprietor in a health profession. I have an office, but I see a lot of clients at their homes or primary residence. I need a car to conduct my business, and have just bought a new car. What are the tax implications of this? Can I deduct the repayments and insurance premium as a business expense?

Need help with filing for CGT

  Written by Evan   Posted 17 August 2015

I need help with filing for capital gains tax. I sold my property in August 2014.

Support for cell phone depreciation at SARS?

  Written by Marc   Posted 13 August 2015

What supporting documentation does SARS usually look for when assessing if depreciation/wear and tear on your cell phone is an allowable deduction. Please note that my cellphone is paid via a monthly contract fee. These contracts usually don't stipulate the base price of the phone. Furthermore, what support do you need to give them for the allocation of business use versus private use. I have tried to search and ask what they need as they wanted to verify this deduction, however, I cannot seem t...

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Passive investment and unit trust income - do I submit a tax return?

  Written by Evan   Posted 12 August 2015

I am an independent contractor and my earnings is below R200 000 per year. Over the past two years, I have managed to save and have invested R100 000 in listed shares and R50 000 in investment funds such as unit trusts. I am not sure whether I need to submit a tax return?
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