How does the tax processing of capital gains work when changing depots?
October 1, 2023 | 40,00 EUR | answered by Anna Karpinski
Dear tax advisor,
My name is Max Schröter and I am currently considering switching my investment portfolio. This brings up some questions for me regarding the tax implications of capital gains.
Starting situation: I have had my portfolio with Bank A and now want to switch to Bank B. My portfolio includes various securities from which I earn regular capital gains. I am wondering how the tax implications work when switching portfolios.
The current situation is as follows: I have already earned capital gains from dividends, interest, and capital gains, which have been taxed at Bank A. Now I want to transfer my portfolio to Bank B and continue earning capital gains.
My concern is that I may overlook potential tax pitfalls and end up paying more taxes than necessary. Therefore, I am wondering how I can optimize the tax implications when switching portfolios to avoid any potential tax disadvantages.
My question to you as a tax advisor is: How does the tax processing of capital gains work when switching portfolios? Are there specific tax aspects I need to consider? What options are available to minimize the tax burden when switching portfolios?
I look forward to your expert advice and thank you in advance for your support.
Kind regards,
Max Schröter
Dear Mr. Schröter,
Thank you for your inquiry regarding the tax implications of transferring capital gains when switching investment accounts. I understand your concerns about potential tax pitfalls and want to ensure that you do not suffer any tax disadvantages.
When transferring your investment account from Bank A to Bank B, there are some tax aspects to consider. Firstly, it is important to note that the transfer of securities itself is not relevant for tax purposes. This means that securities can be transferred from one bank to another without incurring any taxes.
However, when switching investment accounts, it is important to ensure that the tax data is transferred correctly. In particular, the acquisition dates of the securities are crucial as they are used for calculating gains and losses as well as determining the holding period. If this data is not transferred correctly, it may lead to issues with the taxation of capital gains.
Another important aspect is the payment of capital gains tax. If you receive regular capital gains from dividends, interest, and capital gains, these must continue to be taxed. When switching investment accounts, you should ensure that the new bank correctly withholds the capital gains tax and issues the appropriate tax certificates.
To minimize the tax burden when switching investment accounts, I recommend speaking with both banks before making the switch and familiarizing yourself with the tax aspects. You may also consider consulting a tax advisor to assist you with the transfer and ensure that all tax regulations are adhered to.
Overall, it is important to stay well-informed and keep an eye on all tax aspects to avoid potential tax disadvantages. I hope this information has been helpful to you and I am available to answer any further questions.
Best regards,
Anna Karpinski
