Taxes on "short term shares trading" for non-professional trader

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ee123

Guest
Hello,

I have seen a few threads here and there - still not clear...

Let's imagine some profit is made buying and selling shares online on a spare time (while working full time as an IT engineer - not finance related). On average market postions are closed within a week time (selling in 7 days after buying, covering in 7 days after shorting)

Could someone kindly clarify the foollwing, please :

1) Would such a short term trading still be taxed as "Capital gains" or as "Ordinary income" ?

2) Would a person have to pay USC (Universal Social Charge) on top of the CGT ?

Thanks a lot in advance.
 
Thanks, T_McGibney,

I understand you are saying that profits can be seen by the Revenue as income from operating a business ?

I am just back from the Revenue local office - got a ticket and got my turn to talk to a Revenue officer.

She said - all the profits (if any ;)) from the share trading will be taxed under CGT. I have asked about short term part of the question - answer was - does not matter.


I have asked the same question 3 times in different forms - she is 100% sure.

I did not have many encounters with Revenue so far - not sure how to take it... Should I trust the verbally expressed opinion of the officer there ?

Would any one know if I can request a written clarification on how such profits are taxed - maybe through revenue.ie ?

Any advise is welcome.

PS Asked about USC. Answer - USC does dot apply to these profits, only CGT
 
ee123 said:
I did not have many encounters with Revenue so far - not sure how to take it... Should I trust the verbally expressed opinion of the officer there?
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That's totally up to you to decide, but you should bear in mind that Revenue staff have no duty of care in relation to tax advice and if advice provided by them to you is deficient or incorrect, you're on your own.

ee123 said:
Would any one know if I can request a written clarification on how such profits are taxed - maybe through revenue.ie ?
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Again, the above applies to Revenue advice or guidance in written format (including online).
 
T McGibney said:
you should bear in mind that Revenue staff have no duty of care in relation to tax advice and if advice provided by them to you is deficient or incorrect, you're on your own.
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This makes a lot of sense, thank you !

What would be the most reliable source of information on the subject, then ?

Could anyone share own experience - how revenue looks at the profits from part-time share trading ?
 
Hello ee123. Am in same position. Even my accountant cant tell me when Revenue may eventually decide to treat my share dealing as income generating rather than capital gaining so to speak. To my knowledge there are no set limits, for example if you go above € value per year or more than X trades per year you are trading for income as opposed to capital. If anyone knows different please advise. It will put an end to my trading if the day comes when I cant offset losses against gains.
 
Ursus said:
To my knowledge there are no set limits, for example if you go above € value per year or more than X trades per year you are trading for income as opposed to capital.
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Thanks a lot, Ursus !

Would any one know where those limist are (profits per year or number of trades per year) ?
 
As says, there are no set limits. Each case is decided upon according to its own circumstances and the criteria set out in my earlier post.
 
T McGibney said:
As Ursus says, there are no set limits. Each case is decided upon according to its own circumstances and the criteria set out in my earlier post.
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But is there a way at all to know in advance how much tax I will have to pay ?

Would it be wise to go to a tax consultant for a wrtitten clarification (providint personal circumstances), or even a tax consultant would not know in advance - how the Revenue will take it ?
 
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