Episode 051 min 24 sec
Partitions and their tax effect
Ring-fence sources into partitions, set each one's treatment, and see what changes.
Key points
- Every source starts in one default partition; create another to ring-fence sources you hold differently.
- Each partition keeps its own capital or revenue choice, so long-term holdings and active trading can be treated apart.
- In South Africa FIFO still applies across all your partitions; a partition sets only the capital or revenue choice.
- Marking a partition capital is your own assertion, so keep records made at the time that support it.
Chapters
Learn more
- GuideCapital vs revenue: a SARS flowchart
The questions that point a holding towards capital or revenue.
- GlossaryCapital vs revenue
A short definition of the choice each partition records.
- GlossaryFIFO (First-In, First-Out)
The cost method that still runs across every partition.
- HelpPricing
Which plan includes ring-fenced source pools.
Keep learning
Episode 07
Tax rules and the treatment map, 1 min 52 sec, watched
Set your method and classification, decide the unsettled cases, and read the tax treatment map.
C2Reports and your data
The audit report, 1 min 21 sec, watched
Choose the sections a reviewer needs, and show how you reached your figures.
Episode 01
Link an exchange, 1 min 14 sec, watched
Connect an exchange with a read-only key and let your history sync itself.
Read the transcript
Do you trade on one exchange and hold for the long term on another? A partition lets each group keep its own capital or revenue choice.
In Exchanges and wallets, Tax partitions groups your sources. Every source starts in one default partition. Create a partition and name it, for example Long term.
Drag a source into it, or select the source and choose from a list. Here the Luno account, where the coins are held for the long term, is now ring-fenced. Each partition keeps its own capital or revenue choice. Here Long term is capital, and trading on VALR stays revenue. Marking a partition capital is your own assertion about how you hold those coins. Keep the records that support it. In South Africa a partition cannot use its own cost method. FIFO applies across your partitions, and the partition sets the capital or revenue choice.
Your figures then update. Disposals from each partition then follow its own choice. The Luno gains now show as capital, and the VALR trades stay revenue. The choice is yours or your practitioner's. Coinfig does not recommend one.
Create a partition. Ring-fence the source. Set its treatment.