Buying Stocks with Revolut

tyler_d

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I am currently buying stock with Revolut but am a little concerned about the work I might need to put into working out the tax I owe. I don't if anyone can help me with these issues

- Everything is in $$ so does that mean its going to be complicated as I need to work out the conversation rate for each buy and sell which I've done multiple on each stock.
- I assume I pay tax on when I sell and not when I withdraw the money, is that right?
- If I sell the odd stock within the 30 days, do I have to pay income tax on this rather than CGT?

If you think I need to be aware of anything else, I would appreciate any advice. I'm new to investing so don't want to get caught out too much.

Thanks in advance.
 
This is just my understanding , so check with professional ..etc..etc..

- Everything is in $$ so does that mean its going to be complicated as I need to work out the conversation rate for each buy and sell which I've done multiple on each stock.

Take the ammount of money you put in from the ammount you have now. That's your profit.

So if you put in €100 and today you have €125 your profit is €25. (When last sold your shares).

- I assume I pay tax on when I sell and not when I withdraw the money, is that right?

Tax applies when you sell. But as losses count for CGT you total profit after your last transaction at the end November/December is what counts.

- If I sell the odd stock within the 30 days, do I have to pay income tax on this rather than CGT?

I am not aware of any rule like this. I think you may have read something American where there are differences between long/short term investments.
 
Thanks for the reply and appreciate the answers. What I mean with regards the first point is that I'm buying everything in dollar so I assume when I sell a stock and make say $25 I have to keep an excel sheet showing the euro to dollar rate for that profit. The money sits in revolut so it doesn't get put into my bank account until I decide to withdraw. Hope this makes sense.
 
Once you purchase a US stock, you are indirectly also becoming a forex investor. The eur/usd on the day you buy, and on the day you sell, has a very significant impact on your potential gains/losses.

CGT is only due on net gains in a year. The first €1,270 of profit can be pocketed without having to pay tax, and all gains after that is taxed at 33%. Losses can be offset against gains to balance your amount due.

Income tax may be due if for example you invest in dividends paying stock (Johnson & Johnson, Microsoft etc).
 
Semi-related, If I bought a Tesla share on Revolut, do I have to submit a W8BEN form somewhere in order to avoid paying US tax on any gains when I sell the share?
 
I just use a euro to dollar historical website at the moment so I think this should ok.

I think I've got my head around it now but maybe someone can confirm if this sounds right? If I buy two shares of Apple for $500 then in my excel sheet I will firstly this and create a column for the free I paid. Revoluts fee is $1.17. I divide this by 2 as I bought 2 shares. Then I add this to get $500.59 and convert this to euro. Same when I sell. Does this sound right?
 
I am not aware of any rule like this. I think you may have read something American where there are differences between long/short term investments.
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Sorry can I ask about this. So if I buy and sell a US Stock with 4 weeks, then It's still CGT not income tax is this correct?
 
Sorry can I ask about this. So if I buy and sell a US Stock with 4 weeks, then It's still CGT not income tax is this correct?

The differentce is for Americans paying their version of CGT. There is different treatment for long/short term investments.

It's not relevant to an Irish person buying US shares.
 
The differentce is for Americans paying their version of CGT. There is different treatment for long/short term investments.

It's not relevant to an Irish person buying US shares.

Thanks for that. Okay so in the US they treat short term stock sales as income and here all long/short term stock sales are still CGI, is that correct?
 
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Thanks for that. Okay so in the US they treat short term stock sales as income and here all long/short term stock sales are still CGI, is that correct?

As with everything in tax over there , it's complex.

Good summary here:

But none of this matters to you (unless you have us citizenship).
 
So if you put in €100 and today you have €125 your profit is €25. (When last sold your shares).
This is my understanding of it.
By just taking away the sell from the buy (in euro terms) you've taken into account the transaction and forex fees (which are allowable expenses/costs to be taken out of the total gain).

Then I believe you can take away other allowable expenses like Degiro account fees & exchange fees (e.g. NYSE).
And of course the personal exemption tax credit of €1270.

Also I find that buying US stock (as you are doing) better than buying the Euro equivalent as the European exchange where the stocks are listed tend to be around 5 to 10 euro per change, where as NYSE is around 51 cent, so you get more money invested which can compound over time.
 
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