stock split capital gains tax query

[kaff]

Hi,
I am selling some shares which had a four for one stock split in 2000. I bought :
1992 : 27.6 shares
1994 23.0 shares
1995 : 9.2 shares.

After 2000 I had 110.4 shares (1992), 92 share (1994) and 37.8 shares( 95).

I am selling my 232 share but I'm not sure how to calculate the share price for CGT purposes with the split. Do I calculate 27.6 X price paid in 1992 and so on or do I calculate 110.4 X price in 1992 etc.

I'm also selling my vodafone / original eircom shares. I had 2133 original eircom which now are 933 vodafone. Is there any help to calculate my CGT / losses on these shares to offset again others.


I've just sold Deutsche telecom shares so there was plenty of loss there to offset gains.

Any help with calculations would be appreciated.

Thanks
Kaff

 

[mandelbrot]

Hi,
I am selling some shares which had a four for one stock split in 2000. I bought :
1992 : 27.6 shares
1994 23.0 shares
1995 : 9.2 shares.

After 2000 I had 110.4 shares (1992), 92 share (1994) and 37.8 shares( 95).

I am selling my 232 share but I'm not sure how to calculate the share price for CGT purposes with the split. Do I calculate 27.6 X price paid in 1992 and so on or do I calculate 110.4 X price in 1992 etc.

I'm also selling my vodafone / original eircom shares. I had 2133 original eircom which now are 933 vodafone. Is there any help to calculate my CGT / losses on these shares to offset again others.


I've just sold Deutsche telecom shares so there was plenty of loss there to offset gains.

Any help with calculations would be appreciated.

Thanks
Kaff

Are you disposing of your entire holding of each of the shares?

If so then it's very straightforward (as long as you know how much you paid for them!)
i.e. the cost of your 240-odd shares in your first paragraph, is the price you paid to acquire the 59.8 shares. If you didn't have to pay anything to acquire the shares when the stock split occurred, then the cost of the entire holding is unchanged.

If you were only selling a portion of the shares then the calculation would be more complicated but if you're selling the whole lot then you just take the amount paid for them, convert from IR£ to €, index from the year of purchase up to 2003, and that's your cost - so in your case that's 3 different figures:

IR£ Amount paid in 1992 x 1.269738 x 1.356
IR£ Amount paid in 1994 x 1.269738 x 1.309
IR£ Amount paid in 1995 x 1.269738 x 1.277
The multipliers may be different depending on what month you bought the shares...

Ditto the vodafone shares (and I must stress I'm not familiar with the specific history of Eircom / Vodafone so can only speak generally), if the 933 shares equate exactly to 2133 eircom shares then the cost of the 933 Vodafone shares is the price you paid to acquire 2,133 Eircom shares. [i.e. you didn't receive a repayment of some of the capital invested in the original Eircom shares (say €1 per share plus 933 Vodafone), or that the business was split (say you received 933 Vodafone shares and 250 BT shares for example)]

The bottom line is though, if you don't know what you're at, you should probably just pay a professional for an hour or two of their time to sort it for you - saving you time and possibly money.

 

[kaff]

Thank you for the help - much appreciated. I've found the calculations for the Eircom shares as so much published on that topic. Yes I'm selling all the 232 shares so calculation should be ok.

Thanks again for replying.
K