Taxable capital gains or losses
ID:CVTCG

Video Overview

What are capital gains or losses? Capital gains or losses are the taxable profits or losses made on the sale of assets that were not bought for the purpose of making a profit, in other words, not for speculative purposes. Capital gains tax was only introduced at the beginning of October 2001. Prior to this date, capital gains were specifically excluded from the definition of gross income and no tax was payable on capital gains. As from the 1st October 2001, capital gains are still excluded from the definition of gross income, but specifically included in taxable income after deductions. The rate at which they are included is known as the inclusion rate. Currently the inclusion rate for individuals and special trusts is 25%, and for all other taxpayers the inclusion rate is 50%. In this tutorial we will focus on how taxable capital gains or losses are calculated, that is, the amount to be added to taxable income.