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Capital Gains Tax on US shares sold with a US Bank

  • 15-01-2013 4:00pm
    #1
    greenbamboo
    Registered Users, Registered Users 2 Posts: 35 ✭


    My mother sold shares worth 94000 euros that was with a US company. She was a joint name on an account with my father for the last 40 years.The account was with bank of america in the US. My dad died 5 years ago so she decided to sell the shares last year. She received the money in November. The shares were bought by my dad in the 70s and he had the US account ever since because he was an american citizen.She is now worried about the capital gains tax involved and whether she will be cut off her old age non contribution pension or whether she even has to pay CGT at 66 years of age. She is worried that the irish government might take a huge portion of what my dad made on the shares.Does she need to hire an accountant. Any advice would be greatly appreciated


Comments

  • #2
    listermint
    Registered Users, Registered Users 2 Posts: 34,216 ✭✭✭✭listermint


    Hire an accountant, but as far as im aware. You have to pay tax on any profits made. It think it may be around 20% but dont quote me on that.

    Incidently 66 is young and age has nothing to do with paying tax.

    Best of luck to your mam but get some financial advice from a reliable source would be my advice.


  • #3
    nompere
    Registered Users, Registered Users 2 Posts: 1,678 ✭✭✭nompere


    You really need professional help.

    The rate of tax has been 33% since 6 December 2012. Before that it was 30%.

    Amongst the things you will need to know, or will need to find out, are:

    1)The original cost of the shares, and the date or dates of acquisition.
    2)The value of the shares when your father died.
    3)The value of the shares on 6 April 1974 if they were bought before that date.
    4)The exchange rates between the US dollar and the Irish pound/Euro on all those dates.


    There are lots of variables, and you might find that there is no tax, or you might find that that the tax is over €20,000. It's the gain that is taxable, not the proceeds. Finding out the gain can be far from easy.


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