If you make a profit by selling securities, capital gains tax must be paid on this realized profit. However, if you have made losses with another securities transaction, the realized profits and losses can be offset against one another in order to calculate the tax, taking into account the rules mentioned below.
For the offset, two so-called “loss offsetting pots” are created for each securities account in which all realized losses are recorded and offset against realized profits.
You can view your loss offset pots at any time in the app. To do this, go to the app settings and click on the Tax overview dialog. In the lower area you will see your loss offset pots for stocks, others and the withholding tax paid.
The loss offset pots are always updated at night and therefore outside of trading hours.
Loss offsetting pot "Shares "
The "shares" loss offset pot is used to offset realized losses from share sales with profits from the sale of shares.
** Other loss offset pot**
In the "other loss offset pot" the losses from all other transactions are recorded in order to offset these against the income from ETFs , funds, dividends, interest, etc.
The following rules must be observed when offsetting losses from both pots.
- Stock profits can be offset against losses from stock transactions as well as against losses from other investments - So both loss pots are used.
- The situation is different with losses from stock transactions, because these can only be offset against realized profits from the sale of shares.
- After losses and profits have been offset, the tax-free amount is the last thing up to a maximum of 1000 EUR.
- Capital gains taxes will only be paid when your exemption order has been completely exhausted.
- In the event that one of the loss offsetting pots has a negative balance at the end of the year, there are two options: 1) the loss carryforward and 2) the issuance of a loss certificate
- If a loss is carried forward, the loss offset pots and the losses documented therein are carried over to the following year. The transfer takes place automatically. The losses can be reduced through capital gains in the following year.
Customers can also apply for a certificate of the remaining loss by *15 December each year. *The loss offset pots are then set to zero. With this loss certificate you can then claim the loss amount in your tax return and, if necessary, have it offset against positive capital gains from other banking institutions.