eToro and revenue

cute sheep

Hi there.

I recently started to trade shares on eToro on a small scale as a bit of a cerebral hobby. I think I'd like to keep going and maybe increase the overall value of my investment, but I am curious about how the tax would work, especially with a trading platform that is outside of Ireland, and in a different currency. The money I have deposited in eToro is from my savings earned when working and I obviously already paid PAYE on that income. (1) I presume then that only profit is relevant to the tax man?

(2) What tax is paid on profit? Is it capital gains tax?

(3) Can I offset losses and charges against profits before paying tax on the remaining balance? Is tax due on every completed individual transaction or on the value of the overall portfolio on a set date (which would be what date)?

(4) How do I demonstrate my trades to the satisfaction of the tax man? Does eToro send records to (1) me and (2) Irish revenue and, if yes, would anyone know how and when this is done?

(5) Using Apple shares as an example, is Revenue involved in a holding trade that happens to be in profit or is only relevant when I close the shares at a profit?

(6) Can I offset foreign exchange fees against the tax debt as eToro is in dollars and I am losing when I convert back to euro?

(7) is there any other relevant information you can share that I may not have known to ask?

I have recently stopped work at 59 and am living off savings (and my poor long suffering husband who is 68 and retired). I am not claiming any pension at this time or any form of social welfare. The only taxable household income is my husband's private and state pensions. I have been a PAYE employee all my life and I don't know where to start with tax as a retired couple.

Thank you so much for any advice you can share with me,

Geuze

(1) (2) CGT may be due on any gains made from selling assets. Income tax may be due on any dividends.

(3) Capital losses can be offset against capital gains, yes.

The relevant date is the date of disposal of the asset.

(4) CGT is self-assessment, AFAIK.

(5) CGT obviously only applies when you dispose of an asset, and make a gain.

(6) Stockbrokers fees can be deducted, yes. I'm not sure about FX costs.

Geuze

Have you transferred your tax credits to your husband, as you no longer have taxable income?

Geuze

CGT:

https://revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/index.aspx

cute sheep

https://www.boards.ie/discussion/comment/117957306#Comment_117957306

Yup, I have done that, but thank you so much for checking.