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Ireland Cashout Methods

Learn how capital gains and losses are calculated in Ireland.

Diego Lorenzetti avatar
Written by Diego Lorenzetti
Updated over a year ago

The main cashout method used in Ireland is FIFO (first in first out), and applies to assets of the same class (i.e. multiple units of ETH).

Example:

  • User A buys 0.5ETH on 1st of February at a cost of 1,000€ (ETH price 2,000€)

  • User A buys 1ETh on 7th of April at a cost of 1,600€ (ETH price1,600€)

  • User A sells 1ETH on 3rd of June at a price of 1,800€ (ETH price 1,800€)

Gain/loss calculation is as follow:

[(0.5*2,000)+(0.5*1,600)]-(1*1,800) = 0

An exception to the FIFO rule is for assets bought and sold or disposed of within four weeks, in this case the LIFO (last in first out) will be applied.

Example:

  • User A buys 0.5ETH on 5th of March at a cost of 950€ (ETH price 1,900€)

  • User A buys 0.5ETH on 10th of May at a cost of 900€ (ETH price 1,800€)

  • User A buys 1ETH on 2nd of June at a cost of 1,600€ (ETH price 1,600€)

  • User A sells 1.5ETH on 6th of June at a price of 2,400€ (ETH price 1,600)

Gain/loss calculation as follow:

(1.5*1,600)-[(1*1,600)+(0.5*1,800)] = -100

If in this four weeks period you made some losses, you can only offset them against gains also made during the same period.

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