Tax-deductible loss from the sale of ship funds?
September 20, 2012 | 25,00 EUR | answered by Dr. Yanqiong Bolik
I intend to sell the two funds mentioned below on the secondary market. Both are held in private assets and were acquired in 2006 and 2007.
Question: Can I claim the sales losses for tax purposes? (Example: Purchase 10000 / Sale 1000 / Loss of 9000 tax-deductible?) And if so, how?
Fund 1: Investment company "MS Santa-B-Ships" mbH & CoKG (Issuer: MPC Capital) = Annex G must be submitted
Fund 2: Lloyds Funds Ship Portfolio III
- MS "Sofie Schult" Shipping GmbH & Co KG
- MS "Las Vegas" Shipping Company mbH & Co KG = Annex G must be submitted
Dear questioner,
Thank you for your inquiry, which I will answer considering your input and the rules of this platform.
Please note that my explanation is based on the facts presented, and that adding, omitting, changing information, or the ambiguity of information can change the tax result.
Based on your description, I assume that the investors (shareholders) in the ship funds are considered as co-entrepreneurs. Please inform me if this assumption is not correct, as it could change the tax consequences.
In general, the result from the sale of the entire share of a shareholder who is considered as a co-entrepreneur of the business (...mgh & Co. KG) is part of the income from business operations. The loss can generally be claimed. The losses are recorded in Annex G starting from line 31.
Depending on the structure of the ship funds, there may be cases where the consideration of the loss from sale is restricted, particularly when the investment in the fund offers the taxpayer the opportunity to offset the projected losses with other positive income in the initial phase of the investment, based on a pre-made concept. In such cases, the losses can only be offset to a limited extent with (future) profits from the same source of income. Whether the funds you mentioned belong to such tax deferral models cannot be determined based on your information and approach.
In your case, you can enter the requested information in Annex G starting from line 31. The tax office will verify whether the losses can be offset with other income.
I hope I could be of assistance.
If there are still uncertainties, please feel free to use the follow-up function.
Best regards,
Dr. Yanqiong Bolik
Tax consultant
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 2132 1815
Email: info@zdbz.de
www.steuerberatung.zdbz.de
