How are capital gains taxed in the income tax return?
August 15, 2023 | 50,00 EUR | answered by Eiko Hoffmann
Dear tax consultant,
My name is Artur Kohlstein and I have a question regarding the taxation of capital gains in my income tax return. This year, I have earned capital gains for the first time and I am unsure of how to correctly report and pay taxes on them in my tax return.
Current situation: Last year, I invested in stocks for the first time and made profits. I now want to report and pay taxes on these profits in my income tax return. However, I am unsure if I need to fill out specific forms for this or if the capital gains will simply be offset against my regular income.
My concerns stem from the fear of making a mistake and potentially having problems with the tax authorities. Since I am not well-versed in tax matters, I rely on professional help to ensure that my tax return is correct and complete.
Therefore, my question to you is: How are capital gains taxed in the income tax return and what steps do I need to follow to report them correctly? Are there specific forms that I need to fill out and what documents do I need for this? I would greatly appreciate your assistance in this matter so that I can submit my tax return accurately.
Thank you in advance for your help.
Best regards,
Artur Kohlstein
Dear Mr. Kohlstein,
Thank you for your inquiry regarding the taxation of capital gains in your income tax return. It is understandable that you are unsure about how to correctly report and tax your stock profits. I will explain in detail how capital gains are treated in the income tax return and the steps you should take.
In general, capital gains, including profits from stocks, are to be reported in the "Anlage KAP" of your income tax return. There, you must indicate the type of capital gains, the amount of income, and the capital gains tax already paid. If you have not yet paid any capital gains tax, you must tax the capital gains in your tax return.
To report your capital gains, you typically need a tax certificate from your bank or broker, showing the income you have earned. This certificate should include information on interest income, dividends, and capital gains. Additionally, you should keep all relevant documents such as account statements or purchase and sale receipts of your stocks, in case you need to present them to the tax office.
It is important to accurately report your capital gains to avoid any potential issues with the tax office. If you are unsure if you have filled out everything correctly, I recommend consulting a tax advisor who can assist you with preparing your tax return.
In summary, you should report your capital gains in the "Anlage KAP", have your tax certificates and documents ready, and ensure that you do not double tax any already paid capital gains tax. By following these steps, you can ensure that your tax return is accurate and complete.
I hope this information has been helpful to you. If you have any further questions, please feel free to contact me.
Sincerely,
Eiko Hoffmann
