What impact does the capital gains tax have on my capital assets?
June 26, 2023 | 40,00 EUR | answered by Paula Köhler
Dear tax consultant,
my name is Jonas Klinger and I am currently focusing intensively on my capital assets. I have some investments and investments that I have built up over the years and now I would like to learn more about the impact of capital gains tax on my wealth.
Currently, I have some securities, fixed deposits, and also a savings account, on which I regularly receive interest and dividends. However, I am unsure about how exactly the capital gains tax is applied to these earnings and what influence it has on my capital assets.
I am concerned that I may not have considered all the tax aspects of my capital assets and may have to make unnecessary tax payments. Additionally, I wonder if there are ways to optimize or minimize the capital gains tax to protect my wealth as best as possible.
Could you please explain in detail how the capital gains tax works and what specific effects it has on my capital assets? Are there any specific tax optimization options that I should consider to reduce my tax burden? I would be very grateful for your expertise and support on this matter.
Thank you in advance.
Sincerely,
Jonas Klinger
Dear Mr. Klinger,
Thank you for your inquiry regarding the capital gains tax and its impact on your capital assets. As a tax advisor specializing in capital assets, I am pleased to assist you with this question.
The capital gains tax is a tax levied on income from capital assets, including interest, dividends, capital gains, and rental income. These incomes are usually taxed at a fixed rate, currently set at 25%. Additionally, there is a solidarity surcharge and possibly church tax, which slightly increases the effective tax burden.
However, there are also tax-free allowances for different types of income. For example, there is a tax-free allowance of €801 for singles or €1,602 for married couples for interest income. There is also a partial credit for dividends to avoid double taxation of corporate profits.
To optimize your tax burden, there are various strategies you can consider. One option is to invest in tax-optimized investment products such as mutual funds or ETFs. These can offer tax advantages, such as tax-free capital gains or lower taxation on capital gains.
You may also consider utilizing loss offsetting opportunities to reduce your tax burden. This means you can offset losses from security sales with gains to reduce your tax liability. Additionally, using tax-optimized investment strategies like the "tax deferral model" can help minimize your tax burden.
It is important to note that tax optimizations should always be done within the framework of current laws, and you should seek advice from a professional tax advisor if in doubt. Each case is unique, and it may be beneficial to develop a tailored tax strategy for your capital assets.
I hope this information is helpful and I am available for any further questions you may have.
Kind regards,
Paula Köhler
