capital gains tax

D

drums

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I made a gain of €3975 on shares sold in 2005. I would like to offset a loss of €797 from eircom shares originally bought in 1999. Should I deduct my €1270 allowance and calculate 20% for tax due and then subtract my loss from eircom shares ie, 3975-1270 = 2705 then 20% of that is 541 and then offset my earlier loss of 797 ?
 
No. The correct way is:

€3,975 - €797 (eircom loss) = €3,178 - €1,270 (personal allowance) = €1,908 taxable @ 20% = €381.60 CGT due.

See www.revenue.ie which shows further examples of how losses are deducted.
 
No - if you have previously incurred capital losses then you add these to your annual CGT allowance and subtract both from the gain and then calculate 20% of the remainder - e.g. €3975 - (€1270 + €797) = €3975 - €2067 = €1908 @ 20% = €381.60. I am assuming that the €797 figure is correct (calculating the loss on eircom can be tricky due to the Vodafone issues and correct attribution of partial costs to different shares etc.) and that there are no other (e.g. indexation) issues to be dealt with.

Post crossed with xeresod's but seems to tally with it all the same.
 
Thanks for the bad news people. I was afraid of that. The eircom loss is based on a previous thread here.
 
I have a quick question on cgt. If I were to buy a house with my sister and she was to live in the property but I was to stay at home with my parents would I be liable for CGT when the property is sold? (No rent will be exchanged)
 
I suspect not but I could be completely wrong (not a tax expert) so you should check with Revenue and/or an independent, professional tax advisor to be sure. Also you may be liable for stamp duty on the purchase as a non owner occupier, you will probably not qualify for owner occupier mortgage interest tax relief (since you will not be an owner occupier) and you will lose your first time buyer status in relation to any eventual future purchase of a home for yourself.
 
You can have only one principal private residence. It does not matter that you do not own it, so in this case it would seem to me that your parents house would be your PPR. Therefore you would have CGT on eventual disposal.

The only way around this would be to 'occupy' the house ..
 
WizardDr said:
You can have only one principal private residence. It does not matter that you do not own it, so in this case it would seem to me that your parents house would be your PPR. Therefore you would have CGT on eventual disposal.
Click to expand...
Yes - but what about this issue mentioned in this thread? Is that irrelevant here? Or maybe it just means that there is no SD liability but doesn't mean that there is any CGT exemption? I could be misreading that info and getting confused (again) about the whole issue of somebody living in a property "on the owner's behalf" and what it all means...
 
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