If you own stocks that have posted losses in the past year, you will be a little annoyed. The tax office is even more annoyed because you can claim these losses in full. However, in the event of a win, you will have to pay tax on stock gains.
When do taxes have to be paid on file profits?
If you own stocks and have made slight losses in the past year, it’s a shame, but it’s even worse for the tax office. You can deduct these losses as a tax burden and thus lower your taxable income. In terms of profits, it has become a little easier for the tax office since January 2009, but you too may benefit from it. The withholding tax has been introduced since then. This means that the financial institutions generally have to pay 25% of the dividend minus the tax exemption to the tax office.
The Lower Limits
It does not matter whether you are at the lower limit of taxpayers or are among the top earners, for whom the tax rate is significantly higher than the percentage withholding tax. Normally, assuming a monthly income of 10,000 euros, you have to pay 42% in taxes. This would also apply to your stock profits. Since the withholding tax comes into play here, you only need to pay 25% tax on share profits. With this taxation you even made a little plus compared to the tax office.
If you are involved in your income tax return, you must fill out the KAP (income from capital assets) annex. You enter your profits from the shares according to the attached statement. Now comes the special advantage for you, because you can also enter the 25% of the withholding tax that has already been paid as a special burden. This significantly lowers your taxable income, so that you can actually still draw a positive balance from the flat tax. For online tax filing with taxfyle this is important.
- In addition, your equity profits are likely to increase as all companies have only had to pay less, taxes since mid-2008. The advertising expenses on investment income from January 2009 were also reduced. Instead of the previous possible total costs according to the attached documents, you can only enter 51 euros as income-related expenses.
- Enter the kilometers driven in the next column. If you have used public transport for a part of the route or on certain days, you must enclose the tickets used on that day as proof. One line below you have to enter the amount that your employer has already reimbursed you. You can find this on the electronic income tax statement. The tax office enters the rest.
You can deduct the second home
If you have to move into a second home for professional reasons, you can enter all the necessary costs . Lines 61 to 79 in Appendix N of the tax return are provided for this. You can initially deduct the costs for your second accommodation in full. Furthermore, there are also the costs for your meals there.
If you also have to drive from your second home to the other place of work, the costs are entered like a normal commuter allowance. In addition to this commuter allowance, you can also enter the expenses for family trips home, whereby you can claim these costs once a week. You must either enclose the tickets, if you have used public transport, or provide evidence in a log book.