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Irish Trading/ Investment Taxes

  • 19-04-2021 7:39pm
    #1
    Registered Users Posts: 175 ✭✭ Jambonjunior


    Is there any guides anywhere?
    I trade big enough to warrant going to an accountant but I will probably be liable for cgt

    Are trades treated individually?
    Or is it on the whole account per year?
    If I make money on puts and say lose on options to do with a share, are they offset?

    I presume I only have to pay once I exit a position (once less than 7 years)?

    If I have a position that I bought last year, and in buy and sell it over a short period, is it subject to deemed disposal?

    Can losses from previous years be brought forward and written off?

    If you buy and sell a security and hold for less than 4 weeks, is it treated as income?


Comments

  • Registered Users Posts: 8,749 ✭✭✭ Shedite27


    You already trade big enough but haven't researched the taxes?


  • Registered Users Posts: 3,501 ✭✭✭ dotsman


    And you will only "probably" be liable for cgt?

    You do realise only the first €1,270 of profit is not liable?


  • Registered Users Posts: 175 ✭✭ Jambonjunior


    Shedite27 wrote: »
    You already trade big enough but haven't researched the taxes?

    Sorry, typo. Meant to say I don't.
    dotsman wrote: »
    And you will only "probably" be liable for cgt?

    You do realise only the first €1,270 of profit is not liable?

    Yes I am aware.


  • Registered Users Posts: 175 ✭✭ Jambonjunior



    If I have a position that I bought last year, and in buy and sell it over a short period, is it subject to deemed disposal?

    I meant to say, if I have a position from last year, and I sell it, and I buy it again within a short period. Am I liable to pay tax on the gains from the first year?

    Or is it treated like a bed and breakfast for losses


  • Registered Users Posts: 1,665 ✭✭✭ Mr Grumble


    Hope you don't mind me jumping in here to ask a taxation question. Can I offset office supplies and IT equipment against CGT? Specifically, I want to buy a laptop and smartphone for trading online, is this a valid expense?


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  • Registered Users Posts: 1,650 ✭✭✭ nompere


    Mr Grumble wrote: »
    Hope you don't mind me jumping in here to ask a taxation question. Can I offset office supplies and IT equipment against CGT? Specifically, I want to buy a laptop and smartphone for trading online, is this a valid expense?

    No.


  • Registered Users Posts: 129 ✭✭ cw girl


    Hey a separate question please - our company is being acquired and any shares in existing co will be exchanged for 2 shares of the acquiring company and 60 cash per share. Would the cash element be subject to income tax or CGT & if CGT how would CGT be calculated?

    Thanks


  • Registered Users Posts: 8,749 ✭✭✭ Shedite27


    cw girl wrote: »
    Hey a separate question please - our company is being acquired and any shares in existing co will be exchanged for 2 shares of the acquiring company and 60 cash per share. Would the cash element be subject to income tax or CGT & if CGT how would CGT be calculated?

    Thanks

    The 60 counts as dividend. Treat it as Income Tax only.


  • Registered Users Posts: 1,650 ✭✭✭ nompere


    Shedite27 wrote: »
    The 60 counts as dividend. Treat it as Income Tax only.

    Absolutely not - the 60 cents per share is almost certainly a part disposal for CGT purposes.

    There's an apportionment of the original cost of the shares to be done, based on the aggregate value of the 60 cents per share and the value of the shares in the acquiring company that will determine the actual gain arising on the part disposal.


  • Registered Users Posts: 8,749 ✭✭✭ Shedite27


    nompere wrote: »
    Absolutely not - the 60 cents per share is almost certainly a part disposal for CGT purposes.

    There's an apportionment of the original cost of the shares to be done, based on the aggregate value of the 60 cents per share and the value of the shares in the acquiring company that will determine the actual gain arising on the part disposal.

    I was in the situation last year, had my Livongo shares bought out by Teledoc. We got $11 per share plus a Teledoc share. The advice I found at the time was that the $11 was considered a dividend, and essentially the Teledoc share I got replaced the Livongo share.

    This was my interpretation of what I read at the time, so certainly not official tax advice.

    Though as Income tax I probably paid more tax (40-50%) that I would have as CGT anyway (33%)


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  • Registered Users Posts: 129 ✭✭ cw girl


    Shedite27 wrote: »
    I was in the situation last year, had my Livongo shares bought out by Teledoc. We got $11 per share plus a Teledoc share. The advice I found at the time was that the $11 was considered a dividend, and essentially the Teledoc share I got replaced the Livongo share.

    This was my interpretation of what I read at the time, so certainly not official tax advice.

    Though as Income tax I probably paid more tax (40-50%) that I would have as CGT anyway (33%)

    Thank you for both responses. Is this how you ended up being taxed with the 11 as income? Conversely if it were taxed as CGT would the full gain incl cash value only crystallize on me selling shares in new company?


  • Registered Users Posts: 1,650 ✭✭✭ nompere


    This is Revenue on this topic:

    https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-19/19-04-10.pdf

    Note particularly Example 2 on page three of the document.


  • Registered Users Posts: 129 ✭✭ cw girl


    nompere wrote: »
    This is Revenue on this topic:

    https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-19/19-04-10.pdf

    Note particularly Example 2 on page three of the document.

    Thanks for that link nompre, that’s useful


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