How can I optimize the taxation of my capital gains?
February 14, 2022 | 50,00 EUR | answered by Robert Kockel
Dear tax advisor,
My name is Franceska Neumann and I am currently focusing intensively on how to optimally tax my capital gains. Over the past years, I have invested in various types of investments and now want to ensure that I am doing everything correctly from a tax perspective.
My current situation is as follows: I have various securities accounts, fixed deposit accounts, and also some properties as investment assets. The returns from these investments vary, and I am unsure of the best way to tax them. I have also heard that there are various ways to minimize the tax burden, and would like to learn more about them.
My concerns are that I may not have fully utilized all available tax benefits so far, and may be paying unnecessarily high taxes. I want to make profitable use of my capital gains, but also want to tax them legally and correctly.
Therefore, my question to you is: What measures can I take to optimally tax my capital gains and take advantage of tax benefits? Are there certain tax planning opportunities that I have not considered yet? How can I minimize my tax burden and make the most of my capital gains?
I look forward to your professional advice and thank you in advance for your support.
Sincerely,
Franceska Neumann
Dear Mrs. Neumann,
Thank you for your inquiry and your interest in optimizing the tax treatment of your capital gains. I am pleased that you are actively engaging with this topic and want to ensure that you do not miss out on any tax advantages.
First and foremost, it is important to understand that capital gains are generally subject to flat-rate withholding tax. This means that income from investments such as interest, dividends, and capital gains are taxed at a flat rate of 25% plus solidarity surcharge and possibly church tax. This tax is usually withheld by the bank or financial institution, so you as an investor do not have to take any action yourself.
However, there are also ways to minimize the tax burden or take advantage of tax benefits. One of these ways is to make use of the saver's allowance. For singles, this allowance is €801 per year, and for married couples, it is €1,602 per year. This means that capital gains up to this amount are tax-free. So if you keep your capital gains below this threshold, you do not have to pay taxes on them.
Furthermore, by carefully timing purchases and sales, you may be able to realize capital gains in a tax-efficient manner. It may be beneficial to offset losses against gains to minimize the tax burden.
Another way to optimize your tax burden is to invest in tax-optimized investment vehicles. For example, you can invest in tax-optimized funds or ETFs that have lower tax implications than traditional securities.
It is also advisable to regularly review and adjust your investment strategy to make the most of your capital gains. In some cases, it may be helpful to seek advice from a professional tax advisor to find the best solution for your individual situation.
I hope this information is helpful to you and I am happy to answer any further questions you may have. I wish you success in optimizing the taxation of your capital gains.
Sincerely,
Robert Kockel, Tax Advisor.
