How can I structure my capital gains in a way that optimally utilizes the tax-free allowance?
May 5, 2022 | 40,00 EUR | answered by Anna Karpinski
Dear tax advisor,
My name is Lilli Meier and I am currently looking into optimizing my capital gains in relation to the use of the tax-free allowance. Currently, I have various investments such as stocks, fixed-term deposits, and investment funds. However, I am unsure of the best way to structure my capital gains in order to fully utilize the tax-free allowance and therefore save on taxes.
My current situation is as follows: I regularly receive income from my different investments that exceed the tax-free allowance. As a result, I have to pay taxes on a portion of this income, which is a financial burden for me. I would like to know how I can restructure my capital gains in a way that allows me to fully or at least mostly utilize the tax-free allowance to reduce my tax burden.
My main concern is that I have not been fully benefiting from my tax-free allowance so far, resulting in unnecessarily high taxes. I would like to learn more about possible solutions to effectively structure my capital gains and minimize my tax burden.
Therefore, my question to you is: How can I structure my capital gains in a way that optimally utilizes the tax-free allowance and allows me to save on taxes? Are there specific investment forms or strategies that can help me with this? I look forward to your expertise and thank you in advance for your support.
Best regards,
Lilli Meier
Dear Mrs. Meier,
Thank you for your inquiry and your interest in optimizing your capital gains in relation to the use of the tax-free allowance. It is understandable that you are thinking about how to structure your capital gains in such a way that you can make optimal use of the tax-free allowance and therefore save taxes. I am happy to give you some tips and recommendations on how to structure your capital gains more effectively.
First of all, it is important to know that the tax-free allowance for capital gains, currently stands at 801 euros for singles and 1,602 euros for married couples. This amount is tax-free for you every year, which means that you do not have to pay taxes on capital gains up to this amount. To make optimal use of this tax-free allowance, you can apply the following strategies:
1. Diversification of investment forms: You already have various investments such as stocks, fixed-term deposits, and investment funds. By distributing your capital gains across different investment forms, you can ensure that you make the best use of the tax-free allowance. However, make sure that the investment forms match your risk tolerance and investment goals.
2. Tax optimization through loss offsetting: If you have losses from capital investments, these can be offset against profits and thus reduce your tax burden. Regularly review your capital gains and use losses strategically for tax optimization.
3. Use of tax-optimized investment products: There are special investment products such as ETFs or tax-optimized funds designed to make the best use of the tax-free allowance and save taxes. Inform yourself about these products and see if they fit your investment strategy.
4. Use of exemption orders: With an exemption order, you can claim your tax-free allowance at your bank or broker to receive tax-free capital gains up to this amount. Make sure to issue exemption orders for all relevant capital investments.
5. Consultation with a tax advisor: If you are unsure how to optimally structure your capital gains, I recommend seeking advice from an experienced tax advisor. A tax expert can show you individual solutions and strategies to minimize your tax burden.
In conclusion, it is important to regularly review your capital gains and adjust them if necessary to make the best use of the tax-free allowance and save taxes. I hope that my tips are helpful to you and I am available for any further questions.
Sincerely,
Anna Karpinski
Tax Advisor
