Can I claim my capital gains for tax purposes?
March 10, 2022 | 40,00 EUR | answered by Robert Kockel
Dear tax advisor,
my name is Nina Netz and I am currently considering whether I can claim my capital gains for tax purposes. In recent years, I have made various investments and have thus earned regular income. Now I am wondering if I should declare these earnings in my tax return in order to save taxes.
My current situation is as follows: I have various securities, savings contracts, and fixed deposits from which I receive regular interest and dividends. So far, I have not declared these earnings in my tax return because I was unsure about how to include them for tax purposes. Now I am worried that I may have to pay taxes if I do not declare my capital gains correctly.
Therefore, my question to you as an expert is: Can I claim my capital gains for tax purposes and if so, how can I do this best? Are there any specific tax exemptions or regulations that I should be aware of? What documents do I need for this and how should I proceed to correctly declare my capital gains in my tax return?
I am looking forward to your response and thank you in advance for your assistance.
Yours sincerely,
Nina Netz
Dear Mrs. Netz,
Thank you for your inquiry regarding the tax treatment of capital gains. I am happy to explain to you how you can report your capital gains in your tax return and what you should consider when doing so.
In general, capital gains must be reported in the tax return as they are subject to income tax. This includes interest from savings accounts, dividends from stocks, and profits from the sale of securities. If you have not reported your capital gains in your tax return before, this could indeed lead to a tax payment, as the tax office could detect these income during an audit.
In order to correctly report your capital gains in your tax return, you will need the corresponding documents provided by your bank or broker. These include annual account statements listing your interest income, dividends, and sales profits. These documents serve as proof of your capital gains and should be carefully retained.
When reporting your capital gains in the tax return, you should be aware that there are certain tax-free allowances that you can utilize to save taxes. For example, there is the saver's lump sum, currently set at 801 euros for singles and 1,602 euros for married couples. This amount is tax-free and does not need to be reported in the tax return. Only if your capital gains exceed this allowance, you must report and pay taxes on them.
I recommend seeking the assistance of a tax advisor for reporting your capital gains in the tax return, as they can help you with accurate recording and calculation of your income. Alternatively, you can use an online tax program that guides you through the tax return process.
I hope this information has been helpful to you and I am available to assist you further if you have any more questions.
Sincerely,
Robert Kockel
Tax Advisor
