How can I protect my capital gains from being taxed too heavily?
April 26, 2024 | 40,00 EUR | answered by Robert Kockel
Dear tax consultant,
My name is Anna Beck and I am concerned about the taxation of my capital gains. In recent years, I have increasingly invested in stocks, bonds, and investment funds and want to ensure that I do not have to pay unnecessarily high taxes. Currently, I am earning regular income from dividends, interest, and capital gains, which I would like to secure long-term.
My main concern is to protect my capital gains from excessive taxation without violating applicable tax laws. I am unsure about the tax planning opportunities available to optimize my income and take advantage of potential tax benefits. I want to ensure that I invest my capital efficiently and legally to avoid unnecessarily giving money to the government.
Can you provide me with specific tips and recommendations on how to optimize my capital gains for tax purposes? Are there any specific investment forms or tax models that could be suitable for me as an investor? How can I review my current investments and potentially adjust them to take advantage of tax benefits?
I look forward to your professional advice and thank you in advance for your support in optimizing my capital gains.
Sincerely,
Anna Beck
Dear Mrs. Beck,
Thank you for your inquiry regarding the taxation of your capital gains. It is understandable that you are considering how to optimize your returns in order to avoid paying unnecessarily high taxes. I am happy to provide you with some tips and recommendations on how to efficiently and legally invest your capital gains.
First and foremost, it is important to know that capital gains in Germany are generally subject to withholding tax. This currently amounts to 25% plus solidarity surcharge and possibly church tax. However, there are several ways in which you can optimize your capital gains for tax purposes. One important strategy is to utilize tax-optimized investment vehicles such as investment funds. Here, gains are only taxed upon the sale of fund shares, which can lead to a lower tax burden.
Furthermore, you can benefit from various tax models such as partial exemption for dividends or the saver's lump sum allowance. The saver's lump sum allowance is currently €801 (€1,602 for married couples) and can be deducted from your capital gains, allowing you to only pay taxes on the exceeding amount. Additionally, you can offset losses from capital gains with gains in order to reduce your tax burden.
It is also advisable to regularly review and potentially adjust your current investments in order to take advantage of tax benefits. It may be beneficial to invest in tax-optimized products or strategically realize gains in order to offset losses.
Finally, I recommend seeking advice from a professional tax advisor who can provide you with personalized tips and recommendations tailored to your individual situation. Only in this way can you ensure that you optimize your capital gains for tax purposes and take advantage of any tax benefits.
I hope this information is helpful to you and I am available for further questions.
Best regards,
Robert Kockel
