ETF Taxation

S

stefanop

Registered User
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63
Hi

I just sold a number of ETF all traded in the USA, QQQQ , SPY and a few others. I made some gain and wonder how I should calculate the tax due on these gains. I'm not sure if they follow the same rules as the standard shares therefore I pay 33% of the total gain (after I subtract the 1270 euros free exemption from the total gains) ? I have the impression by reading other posts that they follow special rules depending on the type of the ETF. Is there a guide or a help that explains how to do the calculation for the ETFs traded in the USA ?

Thanks
Seamus
 
According to Michael Iachini, managing director of ETF research for Charles Schwab Investment Advisory Inc., the simple formula is -

1. First off, the expense ratio remains as a percentage.
2. The per-year, bid-ask spread percentage is calculated by dividing the current spread with the holding period.
3. Lastly, the commission is taken out whenever you buy or sell a fund, unless the brokerage offers commission free trades. The commission per-year percentage conversion is taken by multiplying the commission fee by 2, divided by the total dollar amount invested and then multiplying by 100.
4. ETF investors can then add up the three numbers to calculate the total annual cost in percent terms.
 
Thanks Kundan,,

mmm...seems more complicated than expected. I will do some more research and hope I will not need an accountant for what it should be a quite simple operation.

Seamus
 
Kundan said:
According to Michael Iachini, managing director of ETF research for Charles Schwab Investment Advisory Inc., the simple formula is -

1. First off, the expense ratio remains as a percentage.
2. The per-year, bid-ask spread percentage is calculated by dividing the current spread with the holding period.
3. Lastly, the commission is taken out whenever you buy or sell a fund, unless the brokerage offers commission free trades. The commission per-year percentage conversion is taken by multiplying the commission fee by 2, divided by the total dollar amount invested and then multiplying by 100.
4. ETF investors can then add up the three numbers to calculate the total annual cost in percent terms.
Click to expand...

Kundan

This is an Irish forum. Has your response anything to do with the Irish tax situation?
 
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