Hi all, query please... I keep looking in the revenue.ie website but I cannot find an answer to this query... I am aware that I can crystallize a loss when I sell share "A" only if I don't buy share "A" for at least another 28 days... But how long do I need to keep share "A" before selling it at a loss? Even 1 day? Thank you very much for your comment(s) please...
There are two rules to be aware of, covering two unrelated scenarios:
if you sell Share A to crystallise a loss, and buy it back within 28 days, then any subsequent loss on Share A can only be offset against shares of the same class;
if you buy Share A and sell it within 28 days, then the sold shares are considered to be the ones you just bought; in other words if you held other Share As from a previous purchase, you cannot crystallise a loss on them by buying more Share A and selling it immediately.
There are two rules to be aware of, covering two unrelated scenarios:
if you sell Share A to crystallise a loss, and buy it back within 28 days, then any subsequent loss on Share A can only be offset against shares of the same class
if you buy Share A and sell it within 28 days, then the sold shares are considered to be the ones you just bought; in other words if you held other Share As from a previous purchase, you cannot crystallise a loss on them by buying more Share A and selling it immediately.
Ok, this means that if I bought quantity 30 of share A 30 days ago and quantity 20 of Share A 20 days ago and today I sell quantity 50 of Share A (I never owned Share A before the initial purchase 30 days ago) then as long as I don't rebuy share A for >28 days I can crystallize the total loss as amount of selling (it's clearly lower) minus the 2 purchase costs am I correct? Thank you so much. I'll make memory of this I promise
I just read this extract better:
"This rule does not apply to shares sold within four weeks, which you may make a loss on. You will not be able to offset this loss against a gain made by you, however. You can only use the loss against a gain made when disposing of those specific shares."
from here: https://www.revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/how-to-calculate-cgt.aspx
So I won't claim any loss just in case. Thank you all!