Anxious I may have filed CG1 form wrongly, please advise

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thegemini

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This is the first year I’ve ever filed my own taxes. I was very ignorant about the whole process before this.

I started buying crypto four years ago. A lot of purchases ended up being complete wipe outs with zero earnings. I did not file these as losses as I had no idea about the tax system. It was all new to me and looking back I was basically gambling.

Come last year I finally made money, and wrote off my previous losses of the last four years in my calculations for the cgt payment (which I painstakingly tracked down with bank statements and block chains, erring on the side of caution where figures weren’t an exact match). I have now filed the paperwork but I’m anxious that it will look like I’m doing something untoward as I did not file the losses at the time. Additionally, one of my largest losses took several years as the project owner locked our funds and absconded with them leaving me with nothing after two years of investments.
 
As long as you can justify the previous losses, then you have nothing to worry about.

Your experience just highlights how important it is to keep a "paper" trail of your transactions. Once you have a verifiable list of your transactions, then you can justify your gain and loss calculations.

A loss occurs when you dispose of an asset.

It is not necessarily clear that someone absconding with your funds can be justified as a loss. What evidence is there that the loss was real - can you prove that it disappeared ?
 
thegemini said:
This is the first year I’ve ever filed my own taxes. I was very ignorant about the whole process before this.
Click to expand...

Here is a brief lesson:
  • Income may be liable to income tax.
  • Capital gains may be liable to Capital Gains Tax.


I wouldn't worry too much about not declaring capital losses in the year that they occurred.

I lost 100% on Anglo Irish Bank, but didn't declare that until years later when I made a gain on other shares.

Even then, Anglo Irish bank is not mentioned on my CG1 form.

However, I do have paperwork to support my losses.
 
I have a similar enquiry if someone can help? I am filing a cgt1 form, I paid $5000 for shares in a company that went private in 2022 (scam) I received $600 for my shares and that was it. I now need to record that loss as I have profits to declare for 2024. What information do I need to record on the form? Am I right saying my aggregate consideration is $600, and where do I record how much I paid for them. I do have evidence of all my purchases if I need that.
 
The aggregate consideration is the total of the proceeds of asset sales in 2024

You don't report individual asset gains and/or losses one by one - only the total for the period in question
 
In a simialr boat and only minor losses but want to start the right way, it's quite a difficult form I felt.

What use is the aggregate consideration to revenue I wonder if there is no blow by blow account of gains and losses on each share/item?

I had a trade republic statement for everythign which did help and just slooted them in where they seemed to make snese and included the statement for good measure
 
mmclo said:
In a simialr boat and only minor losses but want to start the right way, it's quite a difficult form I felt.

What use is the aggregate consideration to revenue I wonder if there is no blow by blow account of gains and losses on each share/item?

I had a trade republic statement for everythign which did help and just slooted them in where they seemed to make snese and included the statement for good measure
Click to expand...

Yes, it is not an easy form to complete.

Individual shares are not itemised.

Line 1(a) is where I entered the value of the net sales proceeds of the shares I sold.

That copied then to line 1 (l) as Total Consideration.


In line 7 I entered the capital gain, with the offsetting capital losses in line 8.

Line 11 was my net gain.

As my net gain in line 11 was low, below €500, that same figure went into line 15 Personal Exemption.
 
You've done the right thing here, and going back through bank statements and blockchain records to reconstruct your losses shows more diligence than most people would bother with.

On claiming losses from prior years: you're fine. There's no requirement under Irish tax law to declare capital losses in the year they occur. Losses carry forward indefinitely and get set against future gains. The only rule is you have to use them before you can apply the €1,270 annual exemption. So if you made €5,000 in gains and had €3,000 in carried-forward losses, you offset the losses first (down to €2,000), then apply the exemption to get your taxable gain to €730.

The Anglo Irish Bank example someone mentioned is spot on. Loads of people only declared those losses years later when they had gains to offset. Revenue won't bat an eyelid.

On the crypto scam, that's trickier but still claimable. Revenue's guidance on assets that become worthless is that you can make a negligible value claim. The key is documentation. If the project rug-pulled and the tokens are worthless, keep whatever evidence you have. Blockchain transaction hashes, wallet balances showing zero, news articles about the project folding. You don't need to prove it upfront but if Revenue ever query it, having a paper trail matters.

The CG1 form itself is genuinely confusing. You're not alone there. I've seen people who've filed for 20 years get tripped up by which box is "chargeable gains" versus "net chargeable gains" versus "taxable gains." The terminology on that form is doing no one any favours.

I ended up building a tool that maps CGT calculations directly to CG1 form fields, mostly because I was making the same mistakes myself and wanted something that just told me "put this number in Box 7, this in Box 14, this in Box 15."Full disclosure, it's my own project, still in beta. It handles shares, crypto, RSUs, the lot. The same CGT rules apply regardless of asset type. It's free to try at quickcgt.ie and if you've filed CGT before there's a beta application on the site for full Pro access.
 
I found this YouTube vid useful for CGT calculation:

- YouTube

Enjoy the videos and music that you love, upload original content and share it all with friends, family and the world on YouTube.
www.youtube.com www.youtube.com
 
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