90 replies to this topic

[orca]

If I hold my stocks for over 3 years then start making 6 withdrawals py, would it be CGT or income?

[orca]

Thanks to TheImposter, I can now do my own tax no matter how complex. Never need an Auditor to do it. I may sound stupid but I hated accounting so did woodwork instead.

Thanks again,

Malema

[orca]

Gee. I thought TheImposter was psychic. Are there pills for alzheimers?

[TheImposter]

dominant, If you have time, can you please check if I'm correct with this yearly statement.

 

Cost of Open is R602 251.86

Cost of Close is R480 718.45 for CML and AVI is as shown.

 

I will appreciate your help

You gave us the cost of opening...

[orca]

 

Didn't read your post properly - I've made necessary adjustments

 

Sales R4 253 651.90

 

Cost of Sales:

Opening Stock R602 251.86

Add: Purchase R4 246 159.34

Less: Closing stock (R682 064.15 being R480 718.45 + R201 345.70)

Total: R4 166 347.05

 

Gain: R87 304.85 (R4 253 651.90 less R4 166 347.05)

 

Disclosure in SARS efiling:

 

In trading section

1) Sales (R4 253 652)

2) Cost of Sales (R4 166 347)

3) Deductions as mentioned by dominant (internet costs, computer wear & tear, subscriptions and other expenses pursuant to the production of trading income)

4) Source code for SARS purposes 2514 as its a gain

 

In balance sheet

4) Closing stock (R682 064)

 

 

How did you get the Opening Stock value without knowing what was paid for them?

[orca]

TheImposter, sent you a PM.

Cancel that. Got sorted. I use the Weighted Average Base Cost method so the shares brought forward from last year must include the

costs as with the shares that carry over.

[orca]

TheImposter, sent you a PM.

[orca]

Orca you kidding us right?

I can PM you the yearly statement and you will see that the costs are added to Purchases and Sales.

[HDB]

Orca you kidding us right?

[orca]

Hi Orca,

 

No, if the costs are included in the purchase costs (and deducted from the sales value), then you don't take it into account again, otherwise you're double counting (or deducting ).

The costs are ADDED to both Purchases and Sales. They are not deducted from Sales. Confusing.

[dominant]

Another question. In the attachment I posted, the costs of buying and selling has been added to Purchases and Sales. The costs are R74k. Do I deduct this from the profit. The reason I ask is that when calculating weighted base cost one must add these fees to the base cost.

 

Hi Orca,

 

No, if the costs are included in the purchase costs (and deducted from the sales value), then you don't take it into account again, otherwise you're double counting (or deducting ).

Edited by dominant, 16 August 2013 - 04:12 PM.

[orca]

Another question. In the attachment I posted, the costs of buying and selling has been added to Purchases and Sales. The costs are R74k. Do I deduct this from the profit. The reason I ask is that when calculating weighted base cost one must add these fees to the base cost.

[dominant]

Thank you so much. Geez. That was quick. My accountant gets a figure of R570k profit and she is a registered tax

practitioner.

 

Almost anyone can register as a practitioner. Discuss Thelmposter's calc with her to see what the differences are - maybe she has some other income somewhere that we don't have? Alternatively, I suggest you get a new tax practitioner as soon as possible.

Edited by dominant, 16 August 2013 - 12:30 PM.

[orca]

Thank you so much. Geez. That was quick. My accountant gets a figure of R570k profit and she is a registered tax

practitioner.

[TheImposter]

Didn't read your post properly - I've made necessary adjustments

 

Sales R4 253 651.90

 

Cost of Sales:

Opening Stock R602 251.86

Add: Purchase R4 246 159.34

Less: Closing stock (R682 064.15 being R480 718.45 + R201 345.70)

Total: R4 166 347.05

 

Gain: R87 304.85 (R4 253 651.90 less R4 166 347.05)

 

Disclosure in SARS efiling:

 

In trading section

1) Sales (R4 253 652)

2) Cost of Sales (R4 166 347)

3) Deductions as mentioned by dominant (internet costs, computer wear & tear, subscriptions and other expenses pursuant to the production of trading income)

4) Source code for SARS purposes 2514 as its a gain

 

In balance sheet

4) Closing stock (R682 064)

[orca]

Thanks TheImposter but what about the R201 345.70 AVI that is Closing Stock?

[TheImposter]

Sales R4 253 651.90

 

Cost of Sales:

Opening Stock R602 251.86

Add: Purchase R4 246 159.34

Less: Closing stock (R480 718.45)

Total: R4 367 692.75

 

Loss: R114 040.85 being R4 253 651.90 less R4 367 692.75.

 

Disclosure in SARS efiling:

 

In trading section

1) Sales (R4 253 652)

2) Cost of Sales (R4 367 693)

3) Deductions as mentioned by dominant (internet costs, computer wear & tear, subscriptions and other expenses pursuant to the production of trading income)

4) Source code for SARS purposes 2515

 

In balance sheet

4) Closing stock (R480 718)

[orca]

dominant, If you have time, can you please check if I'm correct with this yearly statement.

 

Cost of Open is R602 251.86

Cost of Close is R480 718.45 for CML and AVI is as shown.

 

I will appreciate your help h  2012.jpg   167.12KB   43 downloads

 

[dominant]

dominant, thanks, very enlightening post.

 

I'm re-registering as a taxpayer with SARS after many years as a resident elsewhere. clearly a lot has changed and SARS is becoming evermore efficient!

If only the rest of government were this way.

 

cheers

 

Pleasure gamma. Not more efficient though, just more red tape!!

[gamma]

dominant, thanks, very enlightening post.

 

I'm re-registering as a taxpayer with SARS after many years as a resident elsewhere. clearly a lot has changed and SARS is becoming evermore efficient!

If only the rest of government were this way.

 

cheers