What are the tax implications of selling stocks or funds?
February 17, 2023 | 40,00 EUR | answered by Robert Kockel
Dear tax consultant,
My name is Hilde Richter and I am currently exploring the potential tax implications of selling stocks or funds for me.
I recently sold a large number of stocks and fund shares as I am looking to finance a new purchase. Since I have not delved deeply into the topic of taxes related to capital assets before, I am concerned about the possible tax consequences this sale could have for me.
So, my current situation involves the sale of stocks and fund shares where I made a profit. Now, I am wondering how this profit will be treated for tax purposes and whether I will need to pay taxes on it.
I would like to learn from you how the sale of stocks and funds should be accounted for tax-wise and whether there are ways to save or optimize taxes. Are there any specific tax-free allowances or special regulations that I can take advantage of?
Thank you in advance for your support and advice on this matter.
Sincerely,
Hilde Richter
Dear Mrs. Richter,
Thank you for your question regarding the tax implications of selling stocks and fund shares. It is understandable that you are concerned, as taxes on capital gains are a complex topic.
In general, profits from the sale of stocks and fund shares are considered capital gains and are therefore subject to capital gains tax. In Germany, this is currently 25% plus solidarity surcharge and possibly church tax. However, there are also tax-free allowances and special rules that can help you save or optimize taxes.
One important allowance you can claim is the saver's lump sum allowance. This is €801 for singles and €1,602 for married couples per year. This means that capital gains up to this amount are tax-free. So if you have made profits from the sale of stocks and fund shares that are below the saver's lump sum allowance, you do not have to pay taxes on them.
Furthermore, you have the option to offset losses from securities transactions with profits. If you have incurred losses in the past, you can offset them against current profits and save taxes. The saver's lump sum allowance also applies here, as losses can be offset against profits for several years.
There is also the option to avoid the flat tax by declaring your capital gains in the income tax return. By declaring your capital gains in the tax return, you may be able to benefit from lower tax rates, especially if you are in a lower tax bracket.
In summary, selling stocks and fund shares has tax implications, but there are various ways to save or optimize taxes. It is advisable to seek advice from a tax advisor to assess your individual situation and take advantage of the best possible tax planning opportunities.
I hope this detailed answer has been helpful to you. If you have any further questions, please do not hesitate to contact me.
Sincerely,
Robert Kockel
