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Shares Question

  • 11-12-2016 4:44pm
    #1
    Meath Centre Forward
    Closed Accounts Posts: 156 ✭✭


    Let's say you opt to take your €1,000 bonus in 'cash' form from your company. You take home €505 (PAYE = €400, PRSI = €40 & USC = €55).

    Alternatively let's then say you opt to use your €1,000 bonus to buy shares in your company. I'm trying to work out how much the value of the shares would need to drop by to make it the wrong decision to have bought the shares instead of the 'cash' option..

    My guess is €742.65, i.e. you pay 15% foreign tax leaving you with €631.25 and then you pay 20% encashment tax leaving you with €505. So once the value of the shares stay above €742.65, I would still be in profit.

    Am I on the right track here or am I way off?


Comments

  • #2
    topper_harley2
    Registered Users, Registered Users 2 Posts: 537 ✭✭✭topper_harley2


    I know its not what you asked but IMO never buy shares in company you work with - if it goes tits up, youre both redundant and SPis on the floor.


  • #3
    Grecco
    Closed Accounts Posts: 1,007 ✭✭✭Grecco


    Basically the shares would have to halve in value before you have made the wrong decision.
    Its a good perk to have, so go for it. Also there should be an option which allows you to forgo the same of your bonus amount in salary to buy the shares, again Tax free once you hold the shares for 3 years .
    (If the share price rises then you would be liable for tax on the increased value of the shares over your personal threshold limit)


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