Hi everyone,
I am looking for some free advice on my calculations around CGT on RSUs please. I am being really flummoxed by the exchange rate aspect. This is my first time selling RSUs so I always thought it was a simple FX rate calculation on the overall gain/loss but now I'm not so sure based on the CGT guides on revenue.ie.
The shares are in USD.
Below numbers aren't my exact situation but a rough approximation:
Sold 300 Shares in 2015 at $20.00.
They were comprised of:
100 Shares which vested in 2012 with FMV (fair market value) of $18.00
100 Shares which vested in 2013 with FMV of $23.00
100 Shares which vested in 2014 with FMV of $21.00
So total FMV in $6200. Therefore I initially thought I had made a loss of $200 which I would just convert to EUR and save for any future gains.
However in the CGT guide it says,
"Where acquisitions and disposals are made in foreign currencies the cost of acquisition and the disposal proceeds should be converted to Euro at the dates of acquisition and disposal respectively."
I am interpreting this to mean that I need to take the EUR equivalent of the FMVs (with the relevant FX rate on the vest date) and compare that to the EUR equivalent of the sale price on the sale date and that gives me the gain/loss.
So, using made-up FX rates (I'm using central bank daily rates in my real calcs) :
$18.00 in 2012 = €14.00
$23.00 in 2013 = €17.00
$21.00 in 2014 = €16.00
This gives me an FMV of €4700. With $20.00 sale price in 2015 = €17 this means I have actually made a CGT gain of €400.
Could anyone please advise if I'm approaching this correctly - do I have to calculate based on the EUR equivalents at both ends of the transaction? If so, does anyone know if the "date of acquisition" is indeed the vest date for RSUs (or could it be the grant date/sale date)?
Would very much appreciate any advice, esp if anyone else here has been through this - am hoping it's quite a common scenario in US multinationals.
I am looking for some free advice on my calculations around CGT on RSUs please. I am being really flummoxed by the exchange rate aspect. This is my first time selling RSUs so I always thought it was a simple FX rate calculation on the overall gain/loss but now I'm not so sure based on the CGT guides on revenue.ie.
The shares are in USD.
Below numbers aren't my exact situation but a rough approximation:
Sold 300 Shares in 2015 at $20.00.
They were comprised of:
100 Shares which vested in 2012 with FMV (fair market value) of $18.00
100 Shares which vested in 2013 with FMV of $23.00
100 Shares which vested in 2014 with FMV of $21.00
So total FMV in $6200. Therefore I initially thought I had made a loss of $200 which I would just convert to EUR and save for any future gains.
However in the CGT guide it says,
"Where acquisitions and disposals are made in foreign currencies the cost of acquisition and the disposal proceeds should be converted to Euro at the dates of acquisition and disposal respectively."
I am interpreting this to mean that I need to take the EUR equivalent of the FMVs (with the relevant FX rate on the vest date) and compare that to the EUR equivalent of the sale price on the sale date and that gives me the gain/loss.
So, using made-up FX rates (I'm using central bank daily rates in my real calcs) :
$18.00 in 2012 = €14.00
$23.00 in 2013 = €17.00
$21.00 in 2014 = €16.00
This gives me an FMV of €4700. With $20.00 sale price in 2015 = €17 this means I have actually made a CGT gain of €400.
Could anyone please advise if I'm approaching this correctly - do I have to calculate based on the EUR equivalents at both ends of the transaction? If so, does anyone know if the "date of acquisition" is indeed the vest date for RSUs (or could it be the grant date/sale date)?
Would very much appreciate any advice, esp if anyone else here has been through this - am hoping it's quite a common scenario in US multinationals.