ronivek wrote: » I believe the withholding tax is only relevant if you're avoiding your tax liabilities to the Revenue: they will count the 15% against your total tax liability in Ireland so your net should still be the same.
Gordon Gekko wrote: » Does anyone know how the 8 year deemed disposal rule works if at the end of the 8 years you're showing a loss on your UCITS ETF? An example will probably explain my question more clearly: I invest €10,000 at the start of year 1. The market does it's thing over the 8 years with the usual ups and downs. It happens that year 8 coincides with a bear market and I'm down 20% on my initial investment, so that at the 8 year anniversary my UCITS ETF investment is now worth €8,000. Clearly, I owe no deemed disposal tax, so I simply leave the UCITS ETF as is, and thereby it automatically rolls into a 'new' 8 year period. My question is: does Revenue deem my investment to have started afresh at the start of the second 8 year period - and therefore do they rebase my 'acquisition cost' as being €8,000 for the purpose of calculating any gain in the second 8 year period? So if for example we go through a phase of anaemic growth in the second 8 year term, at the end of which my UCITS ETF is worth €10,000 - do Revenue deem me to have made a 'gain' of €2,000 over the second 8-year term, and therefore hit me with 41% of the 'gain' made over the second 8-year term? Meaning I'm at a loss in real terms. Or do they look back to the original acquisition cost of €10,000 at the start of the first 8-year period, and therefore (correctly IMO) view me as having made no gain so far over the life of my holding with that particular UCITS ETF? I can't seem to find a firm answer on this.
ronivek wrote: » I just opened one through Firstrade fairly easily; my only concern right now is how to withdraw moneys without incurring fees which would somewhat defeat the purpose of going to all the trouble in the first place.
Vermelho wrote: » I have the same issue with handling cash from dividends or trades. My plan had also been to open a Firstrade account to trade US ETFs however I have realized that I cannot open a cash management account with them as I live outside the US. I had thought I could use a Transferwise Borderless US account but they do not accept transfers from brokerages. Does anyone have any advice on how to open a US domestic bank account from Europe? The only other option is to open a USD account in Europe but this would incur wire charges of $50 a pop!
ronivek wrote: » I don’t think US investments are suitable if you plan to take an income. If you’re going long you can just setup an auto-reinvest with Firstrade. How did you confirm that they won’t transfer to TransferWise US account?
Cute Hoor wrote: » Why don't you use Interactive Brokers instead, will get over your funding issue. I don't think any of the brokers will accept Transferwise or CurrencyFair or any other 3rd party outfit, not sure why.
Cute Hoor wrote: » Yes you can, I've just placed a buy order for VOO on TDAmeritrade, no problem.
Taylor365 wrote: » Mr Hoor, what is your preferred method to deposit funds and withdraw from TD, if you mind my asking?
Cute Hoor wrote: » It's a long time since I transferred funds to TD and haven't withdrawn. The last time I transferred money to a US broker I set up a US dollar account with BOI, I think I then transferred the money from my BOI Euro account to CurrencyFair, from there to my BOI US account, and from there to the US broker, it was cumbersome, a pain in the butt, and obviously incurred a fair bit in costs.
Vermelho wrote: » Assume you did it that way though in order to save costs rather than doing a direct transfer with currency conversion from your EUR BOI ac? sounds painful alright but I also would probably just do this as a once off.
Dardania wrote: » Could revolut assist in this day and age? I think one can send from dollar account with them
Taylor365 wrote: » I saw you mentioned IB in another thread, they sound WAY more approachable regarding depositing funds.
Cute Hoor wrote: » Yea they are for sure With IB you are depositing Euro though, so it's always going to be easier, with the others your account is going to be in dollars which causes the challenges.
Vermelho wrote: » Sounds good, but what are their costs like? Do they charge a single foreign exchange fee when depositing or is the forex only done at time of trade? Sorry I can’t find details on their website.
Dardania wrote: » Write up in todays Times: https://www.irishtimes.com/business/personal-finance/don-t-invest-in-an-etf-until-you-understand-the-tax-1.3421331
valoren wrote: » There seems to be some perverse human characteristic that likes to make easy things difficult - Warren Buffett.
Taylor365 wrote: » On Second thought, they have an inactivity fee....no use for the build and hold strategy.
Cute Hoor wrote: » Oops, wasn't aware of that, pretty significant too if you don't have sufficient equity in your account or aren't trading monthly.
Vermelho wrote: » I dunno, given the hassle to open a USD account and the cost of keeping one open I think it’s probably cheaper to just pay the monthly inactivity fee.
Cute Hoor wrote: » It's a tricky one, and depends on your situation. With TD or Firstrade, once you have them set up and initially funded, there are no further activity/inactivity fees, so your issue is how often are you going to be transferring funds. The IB inactivity fee at $120 per year is pretty hefty, but wouldn't be if you were a frequent trader, the easiest answer is to get to the $100k quickly and then you don't need to worry about the fees. You need to work out which suits you best really.
Vermelho wrote: » I have the same issue with handling cash from dividends or trades. My plan had also been to open a Firstrade account to trade US ETFs however I have realized that I cannot open a cash management account with them as I live outside the US. I had thought I could use a Transferwise Borderless US account but they do not accept transfers from brokerages.
blorg wrote: » I don't think there would necessarily be an issue receiving money from a brokerage INTO a TransferWise Borderless account. The restriction TransferWise have regarding brokerage accounts is that you can't fund a transfer from a brokerage account, i.e. if you DON'T have the Borderless account, you can't send through TransferWise from a brokerage account. This is a general rule that they have with regard to funding from third party sources, as a brokerage account transfer appears to come from an account in the name of your brokerage, not you. It does not however apply to Borderless account holders- as they CAN have money paid in from third parties (that's the whole point of the borderless account). .. .. ..
