How is Section 104 calculated?

The cost of any given share in a Section 104 holding is calculated with reference to the total amount paid for the overall holding divided by the number of shares held.

How do I calculate CGT on shares?

How to calculate your CGT

  1. Step 1: Work out what you received for the asset.
  2. Step 2: Work out your costs for the asset.
  3. Step 3: Subtract the costs (2) from what you received (1).
  4. Step 4: Repeat steps 1–3 for each CGT event you have had this financial year.
  5. Step 5: Subtract your capital losses from your capital gains.

How do you calculate DST and CGT?

CAPITAL GAINS TAX (CGT): 6% of the selling price (SP) or the zonal value or the Fair Market Value of the property, whichever is higher. DOCUMENTARY STAMP TAX (DST): 1.5% of the selling price (SP) or the zonal value or the Fair Market Value of the property, whichever is higher.

How do you calculate CGT in South Africa?

CGT applies to all assets disposed of on or after 1 October 2001. Capital gains and losses on the disposal of a primary residence are excluded, limited to R2 million. To calculate your capital gains, subtract the base cost of your property from the value at which you sold it.

What is a s104 pool for capital gains?

The Section 104 holding consists of a single pool of expenditure usually representing the actual cost of shares. The exception to using the actual cost is if you held some of the shares on 31 March 1982. In that case you’ll need to use the market value of the shares on that day.

Is CGT calculated automatically?

If you have owned the property for more than 12 months, a 50% CGT discount automatically applies. You then need to enter how much you bought your property for, and how much you sold it for. Last, you need to enter your current taxable income (your income before you pay tax).

How do you calculate DST on property?

To compute the DST, divide the higher amount between the selling price and the fair market value by P1,000.00, then round off the amount to next higher number if there are decimals, then multiply it by P15. 00.

How do you calculate capital gains on sale of property?

In case of short-term capital gain, capital gain = final sale price – (the cost of acquisition + house improvement cost + transfer cost). In case of long-term capital gain, capital gain = final sale price – (transfer cost + indexed acquisition cost + indexed house improvement cost).

How do I calculate CGT of a property?

The CGT formula is as follows: capital gain x 40% inclusion rate x your marginal tax rate. You would therefore pay: R1,500,000 x 40% x 36% = R216,000. If you sell a big asset like a house, try to reduce your marginal tax rate.