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Capital Gains Tax on EQUITIES
Rank: Elder Joined: 7/22/2009 Posts: 7,912
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stock.enigma wrote:mlennyma wrote:Lets know here when someone pays especially in equities I am interested to know what happens if I make a loss in selling equities. For example, I bought Mumias at ksh6, and as it is now, I may sell at Khs2, realizing a loss of Ksh4. Shall I carry-forward the loss? and how do I set it off? This question has been answered so many times on this thread. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 6/2/2011 Posts: 4,824 Location: -1.2107, 36.8831
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stock.enigma wrote:mlennyma wrote:Lets know here when someone pays especially in equities I am interested to know what happens if I make a loss in selling equities. For example, I bought Mumias at ksh6, and as it is now, I may sell at Khs2, realizing a loss of Ksh4. Shall I carry-forward the loss? and how do I set it off? NOPE. No carrying forward anything. You make a profit, you pay CGT. You make a loss, you don't pay CGT. And that is my problem with this CGT. Even a scenario where you bought a stock in various lots and prices but you sell a price higher than the average selling price, shouldn't they consider the average buying price and the selling price? E.g Buy XXX Ltd at the following lots; 3,000 @ 3/- and 5,000 @ 2/-. Your average buy price is 2.375/-. Then sell everything @ 2.6/-. Wouldn't it be fair if they just took (2.6-2.375) for 8,000 shares, instead of (2.6-2)/- for 5,000 shares. Receive with simplicity everything that happens to you.” ― Rashi
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Rank: New-farer Joined: 10/2/2012 Posts: 21
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dunkang wrote:stock.enigma wrote:mlennyma wrote:Lets know here when someone pays especially in equities I am interested to know what happens if I make a loss in selling equities. For example, I bought Mumias at ksh6, and as it is now, I may sell at Khs2, realizing a loss of Ksh4. Shall I carry-forward the loss? and how do I set it off? NOPE. No carrying forward anything. You make a profit, you pay CGT. You make a loss, you don't pay CGT. And that is my problem with this CGT. Even a scenario where you bought a stock in various lots and prices but you sell a price higher than the average selling price, shouldn't they consider the average buying price and the selling price? E.g Buy XXX Ltd at the following lots; 3,000 @ 3/- and 5,000 @ 2/-. Your average buy price is 2.375/-. Then sell everything @ 2.6/-. Wouldn't it be fair if they just took (2.6-2.375) for 8,000 shares, instead of (2.6-2)/- for 5,000 shares. The loss may be carried forward to be offset/deducted against a gain of a similar nature (that is, a capital gain) at a future date. http://www.kra.go.ke/notices/pd...Gains-Tax-Guidelines.pdfMoney is like manure. You have to spread it around or it smells. ~ J. Paul Getty
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Rank: Member Joined: 8/14/2009 Posts: 244
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EndowGaze wrote:dunkang wrote:stock.enigma wrote:mlennyma wrote:Lets know here when someone pays especially in equities I am interested to know what happens if I make a loss in selling equities. For example, I bought Mumias at ksh6, and as it is now, I may sell at Khs2, realizing a loss of Ksh4. Shall I carry-forward the loss? and how do I set it off? NOPE. No carrying forward anything. You make a profit, you pay CGT. You make a loss, you don't pay CGT. And that is my problem with this CGT. Even a scenario where you bought a stock in various lots and prices but you sell a price higher than the average selling price, shouldn't they consider the average buying price and the selling price? E.g Buy XXX Ltd at the following lots; 3,000 @ 3/- and 5,000 @ 2/-. Your average buy price is 2.375/-. Then sell everything @ 2.6/-. Wouldn't it be fair if they just took (2.6-2.375) for 8,000 shares, instead of (2.6-2)/- for 5,000 shares. The loss may be carried forward to be offset/deducted against a gain of a similar nature (that is, a capital gain) at a future date. http://www.kra.go.ke/notices/pd...Gains-Tax-Guidelines.pdf Thanks for the clarification. You do not pay CGT until you cover all your losses, and that may extend to long periods depending on the level of activity of similar nature.
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Rank: User Joined: 1/20/2014 Posts: 3,528
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stock.enigma wrote:EndowGaze wrote:dunkang wrote:stock.enigma wrote:mlennyma wrote:Lets know here when someone pays especially in equities I am interested to know what happens if I make a loss in selling equities. For example, I bought Mumias at ksh6, and as it is now, I may sell at Khs2, realizing a loss of Ksh4. Shall I carry-forward the loss? and how do I set it off? NOPE. No carrying forward anything. You make a profit, you pay CGT. You make a loss, you don't pay CGT. And that is my problem with this CGT. Even a scenario where you bought a stock in various lots and prices but you sell a price higher than the average selling price, shouldn't they consider the average buying price and the selling price? E.g Buy XXX Ltd at the following lots; 3,000 @ 3/- and 5,000 @ 2/-. Your average buy price is 2.375/-. Then sell everything @ 2.6/-. Wouldn't it be fair if they just took (2.6-2.375) for 8,000 shares, instead of (2.6-2)/- for 5,000 shares. The loss may be carried forward to be offset/deducted against a gain of a similar nature (that is, a capital gain) at a future date. http://www.kra.go.ke/notices/pd...Gains-Tax-Guidelines.pdf Thanks for the clarification. You do not pay CGT until you cover all your losses, and that may extend to long periods depending on the level of activity of similar nature. Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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My payout has just checked in.Only 1.83% deducted n no CGT.
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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whiteowl wrote:My payout has just checked in.Only 1.83% deducted n no CGT. Awesome.looking to cash out pretty soon  The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Elder Joined: 6/23/2009 Posts: 14,322 Location: nairobi
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lochaz-index wrote:whiteowl wrote:My payout has just checked in.Only 1.83% deducted n no CGT. Awesome.looking to cash out pretty soon Wewe andika andika hapa tu.. KRA itakufuata hadi ushangae COOP, IMH, KEGN, KQ, MTNU
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Rank: Veteran Joined: 7/1/2014 Posts: 928 Location: sky
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1998 to be used as a base year for tax calculation There are only two emotions in the stock market, fear and hope. The problem is, you hope when you should fear and fear when you should hope
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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obiero wrote:lochaz-index wrote:whiteowl wrote:My payout has just checked in.Only 1.83% deducted n no CGT. Awesome.looking to cash out pretty soon Wewe andika andika hapa tu.. KRA itakufuata hadi ushangae @Obiero Ile siku nitashikwa na KRA pia wewe utashikwa na CMA kwa kuhubiri na kutabiri bila kibali
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Capital Gains Tax on EQUITIES
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