#Thread#Tax #1 You need to pay tax: you have no choice. For normal people, there are 3 main different types of tax that you need to keep in mind: 1. Income tax 2. CGT - Capital gains tax 3. Dividends tax.
#2 Income tax is any income that you make. You can deduct certain things from this, like e.g. if you work online like emails and coding, then you can deduct costs such as your laptop, internet etc from your income.
#3 Capital Gains Tax (CGT) - This is paid when you sell an investment that you've kept for a few years.
#4 Dividends tax - When a company makes a profit and they decide to share this profit with you, it's called dividends.
#5 Tax breaks are there to help you pay even less tax.
Some of these include Section 13 SEX, which is for 5> new or unused properties and FLISP, for lower-income households.
Make sure you understand the ins and outs of the tax break!
#6 In a nutshell, you will need to pay tax - some way or another. You can minimise your tax that you need to pay by getting good tax advice, but don't do illegal things like not paying taxes that you're due to pay! #End
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RIP Charlie Munger (1924-2023) - the Vice chairman of Berkshire Hathaway, and right hand man of Warren Buffet. In honour, I would like to give the 10 best quotes by Charlie.
1. "Spend each day trying to be a little wiser than you were when you woke up."
2. βThe safest way to try and get what you want is to try and deserve what you want."
3. βIn my whole life, I have known no wise people who didn't read all the time - none, zero."
4. βThe big money is not in the buying and selling, but in the waiting."
5. βYou donβt have to be brilliant, only a little bit wiser than the other guys, on average, for a long, long time."
So you want to buy into a sectional title scheme??
Well, let's talk what you should be looking for in the financials - and how to go about it. Oh, and the OTP.
So the OTP. Add a clause stating the sale is dependent on your review of the financial statements. And you have 2 weeks from it dropping in your lap to review and change your mind. Just reword it nicely ;)
Ask for the last AGM pack (if possible) - or just the annual financial statements (AFS).
Focus on the income and expenses, reserves, and outstanding debts.
6 things you should know about a tax free savings account in south Africa... We'll start with the easy ones and go to more complex things π
1. TFSAs a lifetime limit of R500,000, which means that an individual cannot contribute more than that amount over the lifetime of the account. There is also a R36,000 annual limit.
2. Contributions to TFSAs are not tax-deductible, but any interest, dividends, and capital gains earned in the account are tax-free.
Let's talk TAX AND RENTAL PROPERTIES!
How do you pay less tax on rental income?!
Thread below πππ
So, as you might know, rental income is taxed at your normal income tax rate. This means, if you're in the 36% bracket, you will be paying 36% income tax on all income made from property rentals.
But there has to be a way around it?
And that's what the rich and informed do ;)
You have a few choices in paying less tax in rental property: 1. More expenses and deductibles 1.1 Home loans 1.2 Betterment & Maintenance 2. less income 3. tax breaks. 4. do some funky entity dealings - not for the faint-hearted!
And a special section incl: 5. SELLING + taxes
DONT BUY PROPERTY FOR THESE 9 REASONS!! 1. Because you are prequalified/preapproved for an amount. Remember interest rates will climb and might make it unaffordable
2. Because levies are low. With bad management, these can increase. Check that the system and all finances are healthy too!
3. Because it's a beautiful home. It takes a lot of maintenance and MONEY to keep the grass greener on that side. And budget for insurance too...!
Travel tips from top places where I've been: 1. Croatia: beautiful, well priced and cheap for self-drive. Visit Plitvice, Dubrovnik and travel in a rental car so you can stop wherever you want. Booking flights via Rome tends to be cheaper.
2. Turkey: very cheap, amazing food, good coffee and worth just walking around Istanbul. We had a food checklist. Also, check out prices before you buy. Shop around. Avoid touristy places, but do try a Hammam for a scrub!
3. Vietnam: CHEAP, raw, non-touristy and worth to see all the natural beautiful sites including Halong Bay, My Son and the Mekong Delta. We lived on Pringles: x 2 size and 1/2 the price!