Buying & Selling US Shares

T

tyler_d

Registered User
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Hi

I'm working on my capital gain tax and would appreciate if anyone could let me know if I'm working this out correctly. The way is to use an example to show what I think is correct.


I bought 10 shares of apple at $110 In August and sold all 10 shares at $115 in September. This is how I am working it out


Buy
10 Apple shares - $110 = $1100 US- Euro exchange rate $1.18 = €93.22 x 10 = $932.20

Sell
10 Apple shares - $115 = $1150 US- Euro exchange rate $1.17 = €98.29 x 10 = $982.29

Profit to be taxed - $50.09

I use revolut so they charge a fee of $1.17 per transaction and $1.20 when you sell but to simplify it the prices above have these priced in
(eg: 10 apple shares were 1098.83+1.17 = $1100)


Thanks

Aaron
 
If you have a personal tax free credit to put against your gain (1270 euro if you are single) then you won't owe anything, otherwise seems about right above. (Convert profit to euro of course.)
 
For CGT purposes you deduct the Euro value at date of purchase from the Euro value at date of sale to establish the profit loss. In your example the profit is (€98.29-€93.22) X 10. You may have actually done this but the currency signs seem a bit wrong.
 
dublin67 said:
For CGT purposes you deduct the Euro value at date of purchase from the Euro value at date of sale to establish the profit loss. In your example the profit is (€98.29-€93.22) X 10. You may have actually done this but the currency signs seem a bit wrong.
Click to expand...
No that's right the vagaries of hold US stocks currency movements can have a big effect.
 
dublin67 said:
For CGT purposes you deduct the Euro value at date of purchase from the Euro value at date of sale to establish the profit loss. In your example the profit is (€98.29-€93.22) X 10. You may have actually done this but the currency signs seem a bit wrong.
Click to expand...
Should have added use the rate that came from your bank or what ever same with proceeds, dollar has been up and down like a whores knickers from 1.1 to 1.21 and more over the last 5/6 years.
We opened a dollar account here years ago but bank x rates are terrible
 
dublin67 said:
For CGT purposes you deduct the Euro value at date of purchase from the Euro value at date of sale to establish the profit loss. In your example the profit is (€98.29-€93.22) X 10. You may have actually done this but the currency signs seem a bit wrong.
Click to expand...
So by deducting the buy from the sell price (in euro terms out of and into your account) that should take into account transaction & forex fees right? (which are allowable expenses).

Another way to do it would be to calculate the dollar sell minus the dollar buy price.
Convert that to euro (using conversion rate for the respective days of buy & sell).
Deduct the conversion fee & forex fee.
And you should end up with the same CGT amount as your method for calculation?
 
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