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Tax implications of Margin Interest Expense for Share Dealing Account ?

  • 29-10-2016 11:55AM
    #1
    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


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