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CGT Allowance

  • 15-07-2019 3:30pm
    #1
    Registered Users Posts: 2,991 ✭✭✭ Taylor365


    If i sell 1270 worth of stock gains and re-buy straight away every year, do i avoid paying capital gains on that portion of stock when i resell at a later date?


    If i realise a gain of 1270 every year, can that be taxed again?


Comments

  • Registered Users Posts: 1,788 ✭✭✭ Cute Hoor


    Taylor365 wrote: »
    If i sell 1270 worth of stock gains and re-buy straight away every year, do i avoid paying capital gains on that portion of stock when i resell at a later date?


    If i realise a gain of 1270 every year, can that be taxed again?

    Yes

    No

    https://www.paylesstax.ie/sale-of-shares-tax-saving-tips/#.XSyoXehKjIU


  • Registered Users Posts: 2,991 ✭✭✭ Taylor365


    Cute Hoor wrote: »
    What is defined as a gain? Anything i sell over the initial purchase value?


  • Registered Users Posts: 1,788 ✭✭✭ Cute Hoor


    Taylor365 wrote: »
    What is defined as a gain? Anything i sell over the initial purchase value?

    Anything over the initial purchase value, less buy & sell costs


  • Registered Users Posts: 2,991 ✭✭✭ Taylor365


    Cheers most helpful.

    So the strategy is to cash out 1270 a year and immediately buy back the same stock, locking in that gain and paying the €1-2 in transaction fees.


  • Registered Users Posts: 104 ✭✭ tax_tutor1


    Taylor365 wrote: »
    Cheers most helpful.

    So the strategy is to cash out 1270 a year and immediately buy back the same stock, locking in that gain and paying the €1-2 in transaction fees.

    Need to be aware of anti-avoidance rule 'Bed and Breakfast'. Same stock purchased and sold in a 28 day period are offset for tax purposes. Hence maybe no tax gain in these transactions.


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  • Registered Users Posts: 2,991 ✭✭✭ Taylor365


    tax_tutor1 wrote: »
    Need to be aware of anti-avoidance rule 'Bed and Breakfast'. Same stock purchased and sold in a 28 day period are offset for tax purposes. Hence maybe no tax gain in these transactions.
    What are you saying? That i will have to pay tax on my €1270 gain and rebuy?


  • Registered Users Posts: 104 ✭✭ tax_tutor1


    Taylor365 wrote: »
    What are you saying? That i will have to pay tax on my €1270 gain and rebuy?

    No I am pointing out a potential issue. Shares in same company are identical and Revenue rules require you to use the First in First out (FIFO) rule for share cost identification in any calculation of the share disposal. Where the same company shares are purchased and sold in a 28 day period then the LIFO rule applies (Last in First out) for share cost identification.
    By leaving 29 days or more between the transactions you should be able to avoid this issue.


  • Registered Users Posts: 4,235 ✭✭✭ JeffKenna


    I thought you need to leave it 30 days before you rebuy them?


  • Registered Users Posts: 242 ✭✭ hottipper


    Anybody know of a online calculator. i plan on buying and selling the same stock multiple times a year/month/week.


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