CGT carrying forward a loss

[joe sod]

in order to calculate capital gains or loss, is it necessary to have entered the purchase of the asset in the base year eg if purchased

1000 shares of stock A in 2005 for $1000

and sold 1000 shares of stock A in 2010 for $ 500

is it necessary that the purchase of the shares in 2005 was entered in the 2005 return, or is it just necessary to enter the disposal in the 2010 return and calculate the capital gain or loss. In this case there was a $500 capital loss, does the revenue record this loss somewhere or is it the case that you or your accountant notes this loss and then uses it in future returns to offset against future capital gains. In other words is there an automatic record of this loss in the revenue system or is it only through an audit that find out that it was a legitimate loss.

Also is there capital gains tax payable on the disposal of precious metals

 

[joe sod]

buying back shares sold earlier in year

if i purchased

1000 shares of stock A for $1000 in 2005

then if i sold

1000 shares of stock A for $1500 in april 2010

and then bought back

1000 shares of stock A for $1600 in august 2010

am i liable for CGT on the sale of the shares in april 2010 even though i purchased the shares back in august 2010.

I presume the answer is YES

 

[mandelbrot]

in order to calculate capital gains or loss, is it necessary to have entered the purchase of the asset in the base year eg if purchased

1000 shares of stock A in 2005 for $1000

and sold 1000 shares of stock A in 2010 for $ 500

is it necessary that the purchase of the shares in 2005 was entered in the 2005 return, or is it just necessary to enter the disposal in the 2010 return and calculate the capital gain or loss. In this case there was a $500 capital loss, does the revenue record this loss somewhere or is it the case that you or your accountant notes this loss and then uses it in future returns to offset against future capital gains. In other words is there an automatic record of this loss in the revenue system or is it only through an audit that find out that it was a legitimate loss.

Also is there capital gains tax payable on the disposal of precious metals

The system is self assessment so it's up to you to keep track of individual gains and losses, and to make the correct returns, know how much losses you are carrying forward etc... Revenue may then audit you to make sure you've not left the exchequer short!

As for the precious metals, I'm not 100% sure and I'm not going to go looking it up now, but I presume so - well thinking about it logically it's either the case that you're carrying on a trade in buying & selling them, in which case you pay Income Tax, or else you've made a Capital Gain and pay CGT...!

 

[mandelbrot]

if i purchased

1000 shares of stock A for $1000 in 2005

then if i sold

1000 shares of stock A for $1500 in april 2010

and then bought back

1000 shares of stock A for $1600 in august 2010

am i liable for CGT on the sale of the shares in april 2010 even though i purchased the shares back in august 2010.

I presume the answer is YES

Janey mac, you're just full of questions aren't ya!

The answer is Yes.

Have you read the CGT guide on the Revenue site, or the parts relevant to the questions you're asking, I think it's a pretty good guide and reasonably easy to make sense of... http://www.revenue.ie/en/tax/cgt/leaflets/cgt1.pdf

 

[mandelbrot]

if i purchased

1000 shares of stock A for $1000 in 2005

then if i sold

1000 shares of stock A for $1500 in april 2010

and then bought back

1000 shares of stock A for $1600 in august 2010

am i liable for CGT on the sale of the shares in april 2010 even though i purchased the shares back in august 2010.

I presume the answer is YES

An anecdote to illustrate why the answer is YES (and this has happened):

A lady sells her farm which happens to be prime development land, to a couple of developers, for €5m a few years back. They go bust in the recession, and she buys the land back at an auction for €1m.

She still has the same farm of land, and €4m to go with it (before CGT!)...

 

[joe sod]

thanks for that, i know it can be a nuisance to answer detailed specific questions, i suppose the lesson is to try and trade as little as possible,

is it possible to put a lump sum from sale of shares into pension scheme in order to avoid paying CGT