CGT allowable losses

L

LL????

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I purchased an investment property in 2008 for €153k and subsequently sold it in 2020 for €105k.

The acquisition costs were €6k and the sales costs came to €5k.

I have recently sold another property which I made a gain on and want to clarify what loss value I can use to offset against this gain in order to determine my CGT liability which needs to be paid before Dec 15th. Is the allowable loss €48k (€105k - €153k) or €59k (€48k + €6k + €5k) if the acquisition and sales costs can also be factored in.
 
It doesn't take long to get the information directly from the Revenue web site https://www.revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/how-to-calculate-cgt.aspx

In particular
What are ‘allowable expenses’?
These are costs that you can deduct from the sale price to work out your chargeable gain. They can be:

any money spent by you which adds value to the asset (known as ‘enhancement expenditure’)
costs (for example, fees paid by you to a solicitor or auctioneer) when you acquired and disposed of the asset.
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jpd said:
It doesn't take long to get the information directly from the Revenue web site https://www.revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/how-to-calculate-cgt.aspx

In particular
Click to expand...
Thanks for this, but it doesn't really answer my query.

The following is an extract from an Irish Times response to a similar query "As you cannot use allowances to increase a loss, her selling expenses and time for which it was her main home are not relevant" which would suggest in my initial query that the allowable loss is capped at €48k, which is what I'm seeking confirmation of.
 
LL???? said:
"As you cannot use allowances to increase a loss, her selling expenses and time for which it was her main home are not relevant"
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Not correct in this context, whatever about the original.

Seriously consider getting professional assistance where material sums are at issue and you're unsure what you're doing. Out-of-context information may mislead and cause either a tax underpayment or overpayment.
 
I think the Irish Times article is talking about something different. You cannot use capital allowances to generate or increase a loss for income tax purposes. But this has no relevance to the calculation of chargeable gains for CGT purposes.
 
We jointly hold paper shares in Company A bought say 10 years ago. I also have digital shares shares in my own name in Company A bought 2 years ago using an online broker. I have a CGT loss that can eliminate tax on the shares bought 10 years ago. If I sell the 2 year old shares the broker has, is the “first in first out” rule applicable ?
 
TomEdison said:
I think the Irish Times article is talking about something different. You cannot use capital allowances to generate or increase a loss for income tax purposes. But this has no relevance to the calculation of chargeable gains for CGT purposes.
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If you make a loss for cgt purposes that loss is restricted by the amount of capital allowances previously claimed on the asset being sold
 
Park00 said:
We jointly hold paper shares in Company A bought say 10 years ago. I also have digital shares shares in my own name in Company A bought 2 years ago using an online broker. I have a CGT loss that can eliminate tax on the shares bought 10 years ago. If I sell the 2 year old shares the broker has, is the “first in first out” rule applicable ?
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You should have created a new topic. Your question has nothing to do with the original topic in this thread
 
Park00 said:
But does it matter if the shares are jointly owned or not?
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It certainly does.

The FIFO rule applies "for the purposes of identifying shares acquired with shares subsequently disposed of". But if the shares disposed of owned by you alone, then they cannot be identified with shares owned jointly by you and your spouse. The two of you still own the shares owned jointly by you and your spouse; you haven't disposed of them. You sold some shares owned by you alone; the FIFO rule only applies to determine which of the shares owned by you alone you have disposed of.

(This has nothing to do with shares held on paper versus shares held digitally; the FIFO rule would look through all that. But it won't look through the question of who actually owns the shares.)
 
You can transfer ownership of your shares to your spouse at any time with no fiscal consequences - so I don't think it matters. Your spouse is deemed to have acquired them at the same time and cost as you did
 
Careful, now. There's an exception to the FIFO rule. If A disposes of shares/securities or other fungibles to B, and within 4 weeks B disposes of the same kind of shares/securities, the FIFO rule doesn't apply; B is deemed to have disposed of the shares/securities that he got from A. The FIFO rule would only apply to any additional shares that B disposes of. (E.g if A transfers 1,000 shares in Diageo to B, and B then disposes of 1,200 Diageo shares, B is treated as having disposed of the 1,000 share he just got from A, plus 200 of the shares he already held - the 200 that he has held the longest.)

So, in ParkOO's case, if he transfers the recently-acquired shares held in his own name to himself and his spouse, and they then sell shares within 4 weeks, they will be treated as selling the recently-acquired shares.
 
I have shares in Company A.
Say I bought 500 digital shares in 2022 @ €10 each.
These shares are in my name only.

I also have 1000 paper shares in Company A bought in 2000 @ €1 each.
These shares are jointly held.
The price of these shares is now €20.

I sell the 500 digital shares @€20 each.
Easier to sell as no paper shares involved and can be sold online.

So is my gain €5000
Or will revenue say first in first out….so the gain is €9500 even though it is jointly owned.
 
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