cgt time

Mr Cawley

Do I need to declare losses as well as gains for the deadline (15th) or just any overall gains for the period?

Mr K

Isoaxe

You don't need to, but you definitely should! Capital losses can be offset against gains, thereby paying tax on net gains.

poodles

Isoaxe wrote: »

You don't need to, but you definitely should! Capital losses can be offset against gains, thereby paying tax on net gains.

Know any site where I can find to-the-point info on the hows and whys on cgt here?

Isoaxe

Yeah, check the revenue's website and their CGT section;

http://www.revenue.ie/en/tax/cgt/index.html

There's also a pdf file you can download there, called CGT1. Click on 'chargeable assets' on the left menu for the link.

Wudyaquit

From the revenue website:

A return of all chargeable gains and allowable losses must be made on or before 31 October in the year following the year of disposal

Can anyone tell me if this means any market gains in 2010 don't have to be reported until 2011? Thanks,

strmin

Wudyaquit wrote: »

From the revenue website:

Can anyone tell me if this means any market gains in 2010 don't have to be reported until 2011? Thanks,

Yes, but you must pay CGT this year and early next year .

For 2009 and subsequent years the tax year is divided into a revised set of two periods for CGT payment purposes, as follows:

• 'initial period' - 1 January to 30 November, both inclusive.
• 'later period' - 1 December - 31 December, both inclusive.

The due dates for payment of CGT are now as follows:

• Disposals in the initial period: Tax due by 15 December in the same tax year.
• Disposals in the later period: Tax due by 31 January in the following tax year

cloonty

just a wee question.

Over what period can i carry my realised losses forward to be offset against future gains?

Mr Cawley

net gain=pay now???
net loss(which includes some gains)= no payment???

Financial markets are more transparent than this:rolleyes:

homer911

cloonty wrote: »

just a wee question.

Over what period can i carry my realised losses forward to be offset against future gains?

Its currently indefinite, but there was some mention in the budget of limiting cgt losses forward

cloonty

thanks for that.

I was sure there was a limit of 5 years or so.

basejumper

Can someone confirm for me if it is just the purchase and sale value of the shares that are considered for CGT calculation, and that incidental costs involved in purchase and sale of the shares (i.e. broker commission & stamp duty) are not included in the CGT calculation?

For example, say the cost to buy 100 shares priced at €1 each, is €121 (the €100 cost of the shares, broker commission of €20 and 1% stamp duty of €1). Sometime later those shares are worth €2 each, and all 100 shares are sold for a total cost of €220. Is the capital gain based on the €100 gained between the market value of when the shares were purchased and sold?

(I believed this is what is explained in the Revenue's "Guide to Capital Gains Tax" - Chapter 1, section 4 "Computation of Gain", just wanted to be 100% sure.)

Thanks in advance of any assistance

MBateson

Auctioneer's fees are allowable on the sale of property so I'd imagine broker's commission for sale of shares is allowable.

I think stamp duty is also allowable but I'm not 100% on that.

basejumper

Thanks for that information, MBateson.

One further question for anyone: I made a loss on shares for 2009, due to the company de-listing and dropping off the planet (Newcourt PLC). Unfortunately I wasn't aware of the need to file a return to show the loss which I made on that investment. As I would now like to carry that loss forward, can anyone advise what is the process of doing that?

Isoaxe

basejumper wrote: »

Can someone confirm for me if it is just the purchase and sale value of the shares that are considered for CGT calculation, and that incidental costs involved in purchase and sale of the shares (i.e. broker commission & stamp duty) are not included in the CGT calculation?

For example, say the cost to buy 100 shares priced at €1 each, is €121 (the €100 cost of the shares, broker commission of €20 and 1% stamp duty of €1). Sometime later those shares are worth €2 each, and all 100 shares are sold for a total cost of €220. Is the capital gain based on the €100 gained between the market value of when the shares were purchased and sold?

All of the incidental costs you mention can be used as deductibles, but you got the maths a little wrong at the end. The calculation for your example would go as follows:

Cost of shares: €100
Deductibles: €1 (stamp duty), €20 (commission in), €20 (commission out)
Sale of shares: €200

Taxable gain: €200 - €100 - €1 - €20 - €20 = €59

CGT @ 25% = €14.75 tax due

Remember that there is a tax free allowance of €1270 that is deductible from capital gains in the relevant financial year.

MBateson

Regarding the 2009 loss, file a CG1 return for 2009 with the loss details to get it on record. Then carry it forward when preparing subsequent returns. As noted elsewhere, losses forward may be curtailed in future budgets.

If you have any documentation to show the company being dissolved\liquidated etc. keep it in case the Revenue query the loss.

basejumper

Thanks for correcting my maths Isoaxe, time to go back to school me thinks

And if anyone has can advise on how to handle the late reporting / carry over of a loss in 2009 I mentioned above, I'd really appreciate it
http://www.boards.ie/vbulletin/showpost.php?p=69461954&postcount=13

basejumper

Thanks for your assistance MBateson, you replied just as I posted my last message

Reactor

Any mention of CGT going up in the budget?