Can I also claim losses from stock transactions in my income tax return?
May 17, 2023 | 50,00 EUR | answered by Tatiana Herrmann
Dear tax consultant,
My name is Xenia Vollmann and I have recently been involved in stock trading. Unfortunately, I have incurred losses in the past few years and I am now wondering if I can claim these losses in my income tax return.
My current situation is as follows: I have incurred a total of 10,000 euros in losses from stock trading in the last three years. My income from employment amounts to 40,000 euros per year. I am unsure whether I can claim the losses from stock trading for tax purposes and how exactly I should proceed.
My concerns are that I may have overlooked the losses and as a result, may end up paying higher taxes than necessary. Additionally, I want to ensure that I maximize all opportunities for tax savings and do not overlook anything.
Therefore, my question to you: Can I claim losses from stock trading in my income tax return? If so, what documents do I need and what is the exact procedure I should follow?
Thank you in advance for your help and support.
Sincerely,
Xenia Vollmann
Dear Mrs. Vollmann,
Thank you for your inquiry regarding claiming losses from stock transactions in your income tax return. I understand your concerns and would like to assist you with your request.
In general, it is possible to claim losses from stock transactions for tax purposes. These losses can be offset against other income to reduce your tax burden. In your case, with an annual income from employment of 40,000 euros and losses totaling 10,000 euros in the last three years, claiming the losses could indeed result in tax savings.
To claim the losses from stock transactions in your income tax return, you will typically need the corresponding evidence of the losses. This may include securities statements showing the losses. You should keep these documents carefully and present them to your tax advisor when needed.
In your income tax return, you must report the losses from stock transactions in the attachment KAP (income from capital assets). There you enter the losses and can offset them against other capital income. If the losses exceed the capital income, you can carry forward the remaining loss to the next year and claim it there.
It is important to carefully review all relevant documents and provide complete information to avoid possible inquiries or issues with the tax authorities. If you are unsure whether you have correctly reported the losses, I recommend seeking assistance from a tax advisor who can help you with preparing your tax return.
I hope this information is helpful and answers your question. If you have any further questions or need assistance, please feel free to contact me.
Best regards,
Tatiana Herrmann
