US shares & CGT

C

chocolate

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hi,
Can any one advise me on the sale of US Multinational Shares for CGT purposes.
I know there have been forums but can't get exact information, would appreciate any advice

I worked in the US for 10 years and returned to Ireland 5 years ago, and working for the same US Multinational. While living in the US I had a share account with Charles Schwab. This remains in place, with approx $100K in shares.
I also have an Irish Broker account with shares in the same US Multinational.
I want to sell some shares in order to diversify as I all my assets are in shares.

Should I sell the US shares first? I was advised that even if I sell the Irish shares, the CGT will be calculated on my oldest shares, i.e the US ones? So if I sell Irish shares now, calculate the CGT using the cost base of the oldest shares ( In US) what happens down the line when I actually sell the US Shares, and how would the gain be calculate then?

In summary I need know the most tax efficient way to sell some shares in order to diversify .
Thanks in advance for any advice.
 
When you sell a share it is sold on the FIFO basis - ie you are selling the first share that you bought.

All the shares in a company are equal - there is no distinction between a share bought last year and the share bought yesterday.

The cost of the shares you sell is determined by the cost of the oldest shares - it is assumed that these are the ones you have sold. If you sell the shares held in an Irish brokerage account, the cost is the cost of the oldest ones held ie the shares held in an american brokerage account. Your cost basis is then adjusted to reflect the sale.

Later when you sell the shares held in the american account, the cost will be whatever is left again using the FIFO principle.

You have to keep track of each lot of shares purchased, the date and the cost
 
Thanks jpd for that.
Can I just clarify, say I have 2 batches of shares in US, 50 bought in 2010 for $50 each, and 25 bought in 2011 for $75 each.
If I sell now 60 shares from my Irish account, the cost price to be used to calculate CGT will be 50 at $50, 10 @ $75 so total cost of shares being sold $3250, converted to € ?
If next year I decide to dispose of all my US Shares (75), the cost price will be the balance of 15 @ $75, and do I take the cost for the last 60 as being the oldest in my Irish account?
Thanks
 
Exactly

To clarify, convert the $ purchase cost to €s using the exchange rate at the time of purchase not at the time of sale
 
jpd said:
Exactly

To clarify, convert the $ purchase cost to €s using the exchange rate at the time of purchase not at the time of sale
Click to expand...
Why the purchase x-rate? The profit only crystallise at the sale of the shares.

I'm only asking as we too will be selling some in the immediate future.

Also, if that's the rule would the market rate at the date they became owned ?
 
Because you capital gains is calculated as the difference between the proceeds of the disposal (in euros) and the acquisition costs (in euros)

The Acquisition cost (in euros) = Purchase cost on USD ÷ EUR/USD Exchange rate at date of purchase
The Proceeds of the disposal (in euros) = Sales value in USD ÷ EUR/USD Exchange rate at date of sale

Commission other other fees increase the acquisition cost and reduce the disposal proceeds

As long as you can justify the exchange rate you use, the Revenue won't be too picky. Any of the published exchange rate providers will be able to give you that information.

The Market Rate changes every second but you could select the closing market rate for example
 
jpd said:
Because you capital gains is calculated as the difference between the proceeds of the disposal (in euros) and the acquisition costs (in euros)

The Acquisition cost (in euros) = Purchase cost on USD ÷ EUR/USD Exchange rate at date of purchase
The Proceeds of the disposal (in euros) = Sales value in USD ÷ EUR/USD Exchange rate at date of sale

Commission other other fees increase the acquisition cost and reduce the disposal proceeds

As long as you can justify the exchange rate you use, the Revenue won't be too picky. Any of the published exchange rate providers will be able to give you that information.

The Market Rate changes every second but you could select the closing market rate for example
Click to expand...
Thank you, I grabbed the wrong end of the stick.
As ours were RSUs vesting and the sale of shares to satisfy the Revenue I use that rate to calculate the €uro equivalent of shares bought.

Again thanks
 
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