CGT on selling Shares - Cost basis Exchange Rate?

sadie

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If I bought 100 US shares in the year 2000. Shares were $6 each. These cost me $600 then.
I sell these today in 2018 @ $24 each. I get $2400.
So I have CGT on what my profit of $1800.

$600 in 2000 = 638 euros (1 USD = 1.0647)
$600 in 2018 = 512 euros (1 USD = .85)

But my question is: Do I use the exchange rate for USD to Euro for the year 2000 to calculate my Cost Basis, or just calculate everything using today's USD rate?
 
You use the euro value at time of buying and selling, i.e. use the exchange rate from 2000 for your cost basis. Also remember that indexation is allowed up to 2003.
 
If the proceeds of US share sales are deposited in the brokerage account in USD.
Do I use the exchange rate on the Settlement date?
If I transfer the USD to my Irish Bank Account on a different day my actual EURO gains might be less or more?
Or are the Revenue are only concerned about my Euro-equivalent gains on the day I got my profits?
 
Currency gains are subject to CGT as well. So if the settlement date and transfer date are different you may have to account for both the trading gain and the fx gain (or loss) separately.
 
Another query. The Income Tax forms asks for Euro equivalent for Dividends. However, am I allowed to deduct the losses on exchange rate in transferring the dividends to my Irish bank account?
Otherwise I am paying tax on money I never actually received? I should therefore only declare the Euro amount that actually ended up in my Irish bank account.
 
I believe so, yes. This has never been an issue for me -- I have a euro account with a broker and both share sales and dividends are converted from whatever currency they are held in immediately. I always declare the exact euro amounts involved, which means after the broker has deducted all charges including currency conversion charges. On the other hand, it is arguable that the dividend payment is a dividend, but the currency losses are a capital loss. Maybe someone more knowledgeable can comment. My general attitude is if it's not an earth-shattering amount of money then I don't lose too much sleep over it if I believe in good faith I am doing the right thing.
 
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