What are the tax consequences of selling parts of a company within my capital assets?
September 20, 2023 | 40,00 EUR | answered by Paula Köhler
Dear tax advisor,
My name is David Kleine and I have a question regarding the sale of parts of businesses within my capital assets. In my portfolio, I have various stocks and ownership shares that I have accumulated over the years. Now, I am considering selling a portion of these ownership shares to diversify my portfolio and potentially realize profits.
However, I am concerned about the tax consequences that such a sale could entail. I am unsure whether and to what extent I would have to pay taxes on the sale of business assets. Are there any specific tax exemptions or reductions that I can take advantage of? How will the sale affect my income tax return and which forms do I need to fill out?
I want to make sure that I fully understand and handle all tax aspects correctly to avoid any issues with the tax authorities. Can you please explain in detail the tax consequences that the sale of business assets within my capital assets could have? Are there any possible solutions or strategies to minimize or optimize taxes?
Thank you in advance for your help and advice.
Sincerely,
David Kleine
Dear Mr. Kleine,
Thank you for your inquiry regarding the sale of company shares as part of your capital assets. It is understandable that you are concerned about the tax implications and want to ensure that you understand and handle all aspects correctly.
When selling company shares, taxes are generally due, as they represent gains from capital assets. The amount of taxes depends on various factors, such as the holding period of the shares, your personal tax rate, and any tax-free allowances or tax reductions.
In general, gains from the sale of company shares that you have held for more than a year are considered taxable income from capital assets. These are subject to a flat-rate tax of 25 percent, plus solidarity surcharge and possibly church tax. If you have held the shares for less than a year, the gains fall under income tax and are taxed at your personal tax rate.
However, there are also tax-free allowances that you can claim to reduce your tax burden. The annual saver's lump sum is currently €801 for singles and €1,602 for married couples. There is also the option to carry forward losses from the past and offset them against gains.
To correctly report the sale of company shares in your income tax return, you must complete the corresponding form "Anlage KAP". Here you enter the gains and losses from capital assets and calculate the tax liability.
To minimize or optimize your taxes, it may be advisable to seek advice from an experienced tax advisor. They can show you individual strategies on how to legally reduce your tax burden, e.g. through loss offsetting or tax-optimized investment strategies.
I hope I have answered your questions comprehensively and am available for further information. Thank you for your trust and inquiry.
Sincerely,
Paula Köhler
