Offset my Capital Loss on canadian shares to a Capital Gain on an Irish house

ORBarry · 16-10-2019 10:25PM #1

I have a quick question regarding Capital (Gain) Loss.

I have been living in Canada since early 2012. I invested in a company I worked for around mid 2012. The company never paid out any dividends and at the end of 2016 ran out of cash and closed resulting in me losing my full investment.

I have a house in Ireland since 2004 that I am considering selling. I bought it for 125K, put 25K into it, lived in it for 8 years and have rented it for the previous 7. The house is now worth about 170K.

I'm wondering how can I offset my Capital Loss on the canadian shares to an expected Capital Gain on the Irish house.

I have up to date Irish tax returns (complete with recent Tax Clearance) and shall be returning home at the end of this year.

Calahonda52 · 17-10-2019 10:21AM

1: has the loss been crystallised? ie How can you prove you incurred the loss?
.
By way of example, lots of folk here lost their shirts on bank shares, however to crystallise the loss the shares need to be sold, so have you paperwork to that effect, ie that they are worthless?
.
2: For tax purposes the key question is where have you been tax [domiciled/resident/ordinary resident] for the past 7 years

https://www.citizensinformation.ie/en/money_and_tax/tax/moving_country_and_taxation/tax_residence_and_domicile_in_ireland.html
.
https://www.revenue.ie/en/jobs-and-pensions/tax-residence/what-is-domicile-and-the-domicile-levy.aspx

My sense is the answer is no but am no expert.

jimmy456 · 17-10-2019 07:43PM

In 2016 would you have paid tax in Ireland on those shares in the Canadian company, if instead you made a gain rather than a loss?

ORBarry · 18-10-2019 04:23PM

Calahonda52 wrote: »

1: has the loss been crystallised? ie How can you prove you incurred the loss?

By way of example, lots of folk here lost their shirts on bank shares, however to crystallise the loss the shares need to be sold, so have you paperwork to that effect, ie that they are worthless?

2: For tax purposes the key question is where have you been tax [domiciled/resident/ordinary resident] for the past 7 years

My sense is the answer is no but am no expert.

Thank you for your reply:
Ans1: I can dig up proof of share purchase and that the company was liquidated.
Ans2: Resident in Canada for the last 7 years but returning to live in Ireland end of this year

ORBarry · 18-10-2019 04:26PM

jimmy456 wrote: »

In 2016 would you have paid tax in Ireland on those shares in the Canadian company, if instead you made a gain rather than a loss?

Thank you for your reply:
I have made tax returns in Ireland while living in Canada (small rental income) but neither that nor my Canadian returns include the Shares as I've never made an income (profit) from them.

namenotavailablE · 18-10-2019 04:59PM

You don't seem to be Irish tax resident so your only Irish tax liabilities would be on income or gains derived from Irish sourced or located assets (your rental income and any gain on the sale of your house).
That would preclude offset of the Canadian loss against the Irish capital gain.

jimmy456 · 19-10-2019 06:18AM

ORBarry wrote: »

Thank you for your reply:
I have made tax returns in Ireland while living in Canada (small rental income) but neither that nor my Canadian returns include the Shares as I've never made an income (profit) from them.

The question was would you have paid tax in Ireland on those shares if sold for a profit in 2016?

If yes, then you could use the loss now against this gain.
If no, then you can't use the loss now.

Offset my Capital Loss on canadian shares to a Capital Gain on an Irish house

Comments