Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Tax implications of Margin Interest Expense for Share Dealing Account ?

  • 29-10-2016 10:55am
    #1
    Kinsailor
    Registered Users, Registered Users 2 Posts: 63 ✭✭


    I am a PAYE tax payer but to diversify and improve income from savings I opened a modestly funded share trading account in the US. I am declaring capital gains and some dividend income from that account in my tax returns.
    In a previous recent response post to a query by a PAYE tax payer with additional share income, a contributor indicated that the CGT is charged on the capital gain net of any broker expenses etc.
    Some of my capital gain was generated by margin based share purchases for which I have paid margin interest. Can I take a deduction for this interest against any tax due ? and if so can I choose whether I put it against the capital gain or the deposit interest earned on the account. Also just for my own future knowledge (and I hope that it never happens), ignoring any dividend income , if the margin interest cost exceeds any capital gain does a) it count towards creating a net loss , and b) can it also be carried forward to subsequent years ?
    ( I do have a US Tax paid credit that I will be reporting in my return under dual taxation rules).
    Any advice that can be given would be really appreciated as I am using the long weekend to (finally ) catch up on my tax returns :).
    Regards
    Eamon


Advertisement