How do different capital investments affect my tax burden?
February 27, 2023 | 50,00 EUR | answered by Robert Kockel
Dear tax advisor,
my name is Benjamin Kessler and I have been dealing with the topic of capital investments for some time now. I have various investments such as stocks, bonds, investment funds, and also a property. However, I have not yet fully understood how these different capital investments affect my tax burden.
My current situation is as follows: in recent years, I have regularly made profits from my stocks and investment funds, as well as rental income from my property. Now I am concerned that I may have to pay too much taxes or that I may not be optimizing tax benefits.
Therefore, my question to you is: how do my various capital investments affect my tax burden and are there possibly tax-saving measures that I have not considered yet? I would be very grateful for detailed advice on this topic, as I am confident that an optimal tax planning of my capital investments could bring me long-term financial benefits.
Thank you in advance for your help.
Sincerely,
Benjamin Kessler
Dear Benjamin Kessler,
thank you for your inquiry and your interest in optimizing the tax structure of your capital investments. It is understandable that you are concerned about your tax burden and want to make the most of potential tax advantages. I am happy to explain to you how your various capital investments affect your tax burden and what tax-saving measures you can consider.
First and foremost, it is important to know that gains from capital investments are generally subject to capital gains tax. This means that returns from stocks, investment funds, and bonds are taxed at a flat rate of 25% plus solidarity surcharge and possibly church tax. These taxes are usually automatically withheld by your bank and remitted to the tax office.
A different rule applies to your rental income from the property. These are subject to the progressive income tax rate, meaning they are taxed at your personal tax rate. However, you can claim certain deductible expenses, such as maintenance costs, management costs, or financing costs. These can reduce your tax burden and help you pay less taxes.
To further optimize your tax burden, you can consider tax-saving measures. This includes utilizing tax-free allowances, such as the saver's lump sum or the basic tax-free allowance, to exempt your capital income from taxes. The structure of your capital investments can also have an impact on your tax burden, for example, by strategically using loss offsetting pots or utilizing tax-optimized investment strategies.
It is recommended to consult a tax advisor to analyze your individual tax situation and develop tailored solutions. A tax advisor can help you optimize the tax structure of your capital investments and make the most of potential tax advantages.
I hope this information is helpful to you and I am available for any further questions.
Best regards,
Robert Kockel, Tax Advisor
