wazua Fri, Mar 27, 2026
Welcome Guest Search | Active Topics | Log In

5 Pages<12345>
Trade activity
Options
Previous Topic · Next Topic
Kalameni
#21 Posted : Thursday, December 25, 2014 2:56:03 PM
Rank: New-farer

Joined: 9/20/2010
Posts: 80
@ngapat very bold of yu picking memba.wish yu well.
Back to top
  |
mulla
#22 Posted : Thursday, December 25, 2014 3:53:46 PM
Rank: Member

Joined: 6/15/2013
Posts: 301
Kalameni wrote:
@ngapat very bold of yu picking memba.wish yu well.

Very bold of you to take a loan to buy stock when the market is not bullish. Interest 12% + CGT 5% + broker fees 3.8%=20.8%. Equity will have to really work hard for you to make it worthwhile. All the best.
Back to top
  |
maka
#23 Posted : Saturday, December 27, 2014 6:34:42 PM
Rank: Elder

Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
mulla wrote:
Kalameni wrote:
@ngapat very bold of yu picking memba.wish yu well.

Very bold of you to take a loan to buy stock when the market is not bullish. Interest 12% + CGT 5% + broker fees 3.8%=20.8%. Equity will have to really work hard for you to make it worthwhile. All the best.


Where did you get this...
possunt quia posse videntur
Back to top
  |
Gordon Gekko
#24 Posted : Saturday, December 27, 2014 7:50:23 PM
Rank: Elder

Joined: 5/27/2008
Posts: 3,760
mulla wrote:
Kalameni wrote:
@ngapat very bold of yu picking memba.wish yu well.

Very bold of you to take a loan to buy stock when the market is not bullish. Interest 12% + CGT 5% + broker fees 3.8%=20.8%. Equity will have to really work hard for you to make it worthwhile. All the best.

Your computation has a fundamental flaw. CGT is 5% of the gain. If the seller had bought at 50 and sold at 55, CGT is 5% of 5 (55 - 50). And the CGT is levied on the seller, not buyer. And I've always thought broker fees is 2.1%, dropping to 1.85% for big trades.
Back to top
  | | Edit by user: Saturday, December 27, 2014 7:56 PM | Reason: Not specified
Boris Boyka
#25 Posted : Saturday, December 27, 2014 8:32:40 PM
Rank: Veteran

Joined: 11/15/2013
Posts: 1,977
Location: Here
Gordon Gekko wrote:
mulla wrote:
Kalameni wrote:
@ngapat very bold of yu picking memba.wish yu well.

Very bold of you to take a loan to buy stock when the market is not bullish. Interest 12% + CGT 5% + broker fees 3.8%=20.8%. Equity will have to really work hard for you to make it worthwhile. All the best.

Your computation has a fundamental flaw. CGT is 5% of the gain. If the seller had bought at 50 and sold at 55, CGT is 5% of 5 (55 - 50). And the CGT is levied on the seller, not buyer. And I've always thought broker fees is 2.1%, dropping to 1.85% for big trades.

@maka @GG hope you know that @ngapat said he has taken a 600k sacco loan of 12% then bought memba. So his intention is to gain and thus he will SELL later..from these @mulla is right by saying that ngapat has to sell EQT @ > 20% his buying price for him to realize anything. 12% loan repay,5%CGT(he will be a seller by then) 3.6% commision (minimum if he does in 100k +)…in fact CGT may be more if reality as the gvt doesn't know his loan.
Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
Back to top
  |
MaichBlack
#26 Posted : Saturday, December 27, 2014 8:48:55 PM
Rank: Elder

Joined: 7/22/2009
Posts: 7,858
Boris Boyka wrote:
Gordon Gekko wrote:
mulla wrote:
Kalameni wrote:
@ngapat very bold of yu picking memba.wish yu well.

Very bold of you to take a loan to buy stock when the market is not bullish. Interest 12% + CGT 5% + broker fees 3.8%=20.8%. Equity will have to really work hard for you to make it worthwhile. All the best.

Your computation has a fundamental flaw. CGT is 5% of the gain. If the seller had bought at 50 and sold at 55, CGT is 5% of 5 (55 - 50). And the CGT is levied on the seller, not buyer. And I've always thought broker fees is 2.1%, dropping to 1.85% for big trades.

@maka @GG hope you know that @ngapat said he has taken a 600k sacco loan of 12% then bought memba. So his intention is to gain and thus he will SELL later..from these @mulla is right by saying that ngapat has to sell EQT @ > 20% his buying price for him to realize anything. 12% loan repay,5%CGT(he will be a seller by then) 3.6% commision (minimum if he does in 100k +)…in fact CGT may be more if reality as the gvt doesn't know his loan.

Eish!!! Maths is difficult!!!! @GG has given you a nice explanation complete with an example. CGT is on gains not on gross. So if the shares are sold for 700K the 5% CGT will be on 100k NOT 700K.
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
Back to top
  |
Elephant Man
#27 Posted : Saturday, December 27, 2014 9:24:05 PM
Rank: Member

Joined: 12/24/2008
Posts: 112
The cost of the loan (interest) and the broker commission etc. may also be deducted to arrive at the 'gain'. Is it possible that KRA may take the view that gains from trading activity if done frequently or within very short time spans, is not subject to capital gain BUT to either corporation tax at 30%(if you are registered as a business entity) or must be reported/filed as income from other sources which may be subject upto a top rate of 30% on the net income for individuals?
Back to top
  |
Boris Boyka
#28 Posted : Saturday, December 27, 2014 9:25:28 PM
Rank: Veteran

Joined: 11/15/2013
Posts: 1,977
Location: Here
MaichBlack wrote:
Boris Boyka wrote:
Gordon Gekko wrote:
mulla wrote:
Kalameni wrote:
@ngapat very bold of yu picking memba.wish yu well.

Very bold of you to take a loan to buy stock when the market is not bullish. Interest 12% + CGT 5% + broker fees 3.8%=20.8%. Equity will have to really work hard for you to make it worthwhile. All the best.

Your computation has a fundamental flaw. CGT is 5% of the gain. If the seller had bought at 50 and sold at 55, CGT is 5% of 5 (55 - 50). And the CGT is levied on the seller, not buyer. And I've always thought broker fees is 2.1%, dropping to 1.85% for big trades.

@maka @GG hope you know that @ngapat said he has taken a 600k sacco loan of 12% then bought memba. So his intention is to gain and thus he will SELL later..from these @mulla is right by saying that ngapat has to sell EQT @ > 20% his buying price for him to realize anything. 12% loan repay,5%CGT(he will be a seller by then) 3.6% commision (minimum if he does in 100k +)…in fact CGT may be more if reality as the gvt doesn't know his loan.

Eish!!! Maths is difficult!!!! @GG has given you a nice explanation complete with an example. CGT is on gains not on gross. So if the shares are sold for 700K the 5% CGT will be on 100k NOT 700K.

@maichblack......Laughing out loudly Laughing out loudly take a pen and paper do maths pole pole kabla nikuonyeshe hujielewi.
Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
Back to top
  |
Angelica _ann
#29 Posted : Saturday, December 27, 2014 9:35:52 PM
Rank: Elder

Joined: 12/7/2012
Posts: 11,935
The brokerage commission of 3.6% is correct; covers both buy and sell activities!!!
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
Back to top
  | | Edit by user: Saturday, December 27, 2014 9:46 PM | Reason: Not specified
MaichBlack
#30 Posted : Saturday, December 27, 2014 9:38:13 PM
Rank: Elder

Joined: 7/22/2009
Posts: 7,858
Elephant Man wrote:
The cost of the loan (interest) and the broker commission etc. may also be deducted to arrive at the 'gain'. Is it possible that KRA may take the view that gains from trading activity if done frequently or within very short time spans, is not subject to capital gain BUT to either corporation tax at 30%(if you are registered as a business entity) or must be reported/filed as income from other sources which may be subject upto a top rate of 30% on the net income for individuals?

When he was talking about tax on rental income (I think) Njiraini said that he doesn't want deductions (depreciation etc.) to reduce court cases. I don't know if it is laziness or simplifying the system but I think the same will apply to stocks.

It makes a lot of sense if the tax rate is lower. I'd rather pay 5% on gross than 7% on net where I am supposed to have a file load of documentation to prove my deductions. Makes my life easier. BUT it has to be LOWER tax rate on gross than would otherwise have been on the net.
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
Back to top
  |
5 Pages<12345>
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Wazua Investor Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2026 Wazua.co.ke. All Rights Reserved.