Hello
I would sincerely appreciate help with the question that I have.
BACKGROUND
I work as an electronics technician at a company for whom I manufacture electronic modules for internal use.
I have never being involved in manufacturing electronic modules or the sale of components in my private or professional capacity.
PROBLEM/QUESTION
I have bought a lot of new (unused) electronic components (for a good price) from a company that closed down. The purchase was cash and I have no receipt for the purchase.
One can argue that I bought the components:
1. For use in my private projects without selling any produced product.
2. To use in products that I plan to sell.
3. To sell the components either on an individual basis or as a single lot to some one that wants it.
To be honest I cannot recall my intention but I bought it mainly because I got it cheaply. I notice that in determining whether something is liable for CGT it seems that original intent is an important factor.
Now I want to get rid of it. I want to sell the components
1. Either as a lot to an international component redistributor. Maybe 1 or 2 deals/sales will get rid of 90% of the stock
2. I can sell the components individually on Gumtree, Ebay, OLX and Bid Or Buy. (I must state again that in my day job I am not a reseller of electronic components)
3. Or a mix of the 2 above.
I have read up on CGT and frankly I cannot figure out how I will be taxed on the sales of the electronic components. Will the (proceeds of sales - cost of sales - cost of shipping) be subject to "Capital Gains Tax", "Normal income Tax" or "no Tax at all".
I consider "no Tax at all" because I read that there are exclusions on items such as cars which one use for personal use. One can argue that I bought the components for personal use.
Please help me to find out how will I be taxed and what I should do to be taxed the least amount.
Thank you
Fred
Did you like this article? Share it with your favourite social network.