Capital Gains Tax: What You Need to Know!

ARE YOU NOT SURE HOW CAPITAL GAINS TAX WORKS? THEN WATCH THIS!!!! In this video I discuss the basics about Capital Gains Tax. As mentioned its not a very technical video but I rather want to focus on you understanding the basics about Capital Gains Tax. I am disabling the comments on this video, if you need to ask questions about capital gains tax then please get in touch with tax lawyers which I use www.taxconsulting.co.za and make sure to mention my name! For the full guides on Capital Gains Tax visit this page - https://www.sars.gov.za/types-of-tax/... Here is the link to the full guide - https://www.sars.gov.za/wp-content/up... Here are the notes Not a different tax, but how much of profit on sale of asset will be taxable Certain exclusions apply Introduced 1 October 2001 Capital vs Revenue Intention when acquiring asset Period of time held & intervening factors Guide on website Events that trigger a disposal donation, exchange, loss, vesting, death, emigration Basic principle Selling price – base cost = capital gain / loss Base cost = purchase price plus qualifying expenses Losses carried forward Inclusion rates Individuals – 40% Companies – 80% Effective rates Individuals – max 18% (45% x 40%) Companies – max 22.4% (28% x 80%) Examples to follow The following are some of the specific exclusions: R40 000 basic exclusion R300 000 in year of death R2 million gain or loss on the disposal of a primary residence Most personal use assets Retirement benefits Payments in respect of original long-term insurance policies small business exclusion of capital gains for individuals (limited) Assets on which capital gains tax are payable Land and buildings Shares - Bitcoin Certain personal use assets (planes, boats, jewellery,coins, artwork) Contractual rights Goodwill Trade marks Loans