Easy Equities good or bad?

GrootVoet said:
I would like to know what is the South African authorities reach on these platforms. For example CTC on these platforms will SARS be able to access that information.
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I've not had these pull into my income tax return like the local providers and banks, although I declare it myself using the reporting these brokerages provide.

I'm a buy and hold kind of investor, so my declarations are always dividends received. There's a special place to declare this in your tax return.

I think it's only a matter of time before SARS do pull from offshore brokers and hopefully, they don't fsck up the implementation thereof.
 
do any of you guys here specifically focus on taking at least R40k profits in order to use the CGT free allowance every year?
 
Bundu said:
After 10 years you could have increased your base cost quite a bit by doing this as nothing prevents you from buying those shares again when they dip a bit
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Correct, I often sell a holding that I've had for a few years to take profit (within the 40k) exemption. If its a stock I like, I repurchase it again within a day or two effectively resetting the base cost. I aim to maximise this 40k exemption every year. Over the long run, this all adds up.
 
Bincx said:
Correct, I often sell a holding that I've had for a few years to take profit (within the 40k) exemption. If its a stock I like, I repurchase it again within a day or two effectively resetting the base cost. I aim to maximise this 40k exemption every year. Over the long run, this all adds up.
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yeah, seems like some don't yet see the value in doing this
 
mugikhan said:
Time in the market beats timing the market.
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The exercise discussed here has zero to do with timing the market. It's about reducing your long term tax liability by resetting your base cost and taking advantage of the annual 40k tax-free CGT allowance.

Eg. 1
Year 0 - buy for 1m
Year 1 - sell and rebuy at 1,040,000
Year 2 - sell and rebuy at 1,080,000
Year 3 - sell at 1,120,000
Total profit = 120,000
Tax free = 40,000 x 3
Taxable = 0

Eg. 2
Year 0 - buy for 1m
Year 3 - sell at 1,120,000
Total profit = 120,000
Tax free = 40,000
Taxable = 80,000
 
Bundu said:
I sell, declare the profit and if I believe in the share, I buy again
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AirWolf said:
The exercise discussed here has zero to do with timing the market. It's about reducing your long term tax liability by resetting your base cost and taking advantage of the annual 40k tax-free CGT allowance.

Eg. 1
Year 0 - buy for 1m
Year 1 - sell and rebuy at 1,040,000
Year 2 - sell and rebuy at 1,080,000
Year 3 - sell at 1,120,000
Total profit = 120,000
Tax free = 40,000 x 3
Taxable = 0

Eg. 2
Year 0 - buy for 1m
Year 3 - sell at 1,120,000
Total profit = 120,000
Tax free = 40,000
Taxable = 80,000
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Aren't you risking getting flagged as a trader by SARS?

Once SARS thinks you're trading, you pay income tax rather than CGT on profits. My understanding is the rule of thumb is that you have to hold three years to convince them you're investing rather than trading.

Buying and selling the same ETF over and over might make them suspicious.
 
3WA said:
Aren't you risking getting flagged as a trader by SARS?

Once SARS thinks you're trading, you pay income tax rather than CGT on profits. My understanding is the rule of thumb is that you have to hold three years to convince them you're investing rather than trading.

Buying and selling the same ETF over and over might make them suspicious.
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No, one of the shares I do this with, is AGL, that I have owned for 10 years. I also try to split the sell and re-buy over 2 tax years
 
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Quicks said:
Yes, I understand this. But things can go worse and never recoup...

Example: MSCI CHICA: though I thought great when it was going down and, guess what things can get worse?
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Don't be disheartened. China will end its draconian lockdown policy and trade will bounce back. :)
 
LaraC said:
Don't be disheartened. China will end its draconian lockdown policy and trade will bounce back. :)
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I'm hoping for this too. Only reason I haven't offloaded my MSCI China. I actually think that it is pretty cheap ATM and if I didn't have would probably have bought at current prices.
Edit: Just had a look, it's up 25% in USD over the November
 
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