What tax benefits do certain investment forms offer in the area of capital assets?
January 28, 2023 | 45,00 EUR | answered by Anna Karpinski
Dear tax advisor,
My name is Fred Hohenberg and I am currently focusing intensively on the topic of capital assets. In my portfolio, I have various investments such as stocks, bonds, and investment funds. Now I am wondering what tax advantages certain investment forms could offer me.
So far, I have mainly invested in stocks because the return opportunities here seem particularly attractive to me. However, I have heard that there may also be tax advantages with other investment forms such as investment funds. Since I am not sure about the regulations that apply to different investment forms, I am unsure if I could optimize my portfolio to take advantage of tax benefits.
My concerns are that I may be paying unnecessarily high taxes, even though there may be ways to reduce my tax burden. I also would like to plan for the long term and build my portfolio in a tax-efficient way.
Therefore, my question to you as an expert is: What tax advantages do certain investment forms in the area of capital assets offer? Are there any specific regulations that I have not considered? Which investment forms could be tax advantageous for me, and how can I adjust my portfolio accordingly?
I look forward to your expertise and thank you in advance for your support.
Best regards,
Fred Hohenberg
Dear Mr. Hohenberg,
Thank you for your question regarding tax benefits for different investment forms in the area of capital assets. It is understandable that you are thinking about how to optimize your tax burden and which investment forms can help you with that. I would like to assist you and provide an overview of the tax advantages of various investment forms.
First and foremost, it is important to know that the taxation of capital gains in Germany generally follows the individual tax rate. This means that the amount of taxes depends on your personal income. However, there are some tax specialities that can make certain investment forms more attractive.
Stocks are a popular investment form as they offer high return opportunities. Stocks are subject to a flat tax rate of 25%, which is deducted at the source. This means that as an investor, you do not have to pay any additional taxes on your capital gains. Additionally, there is an exemption of 801 euros (for singles) or 1,602 euros (for married couples), up to which no taxes are levied.
Investment funds can also offer tax advantages as they are often considered as tax-optimized investment forms. Gains from investment funds are subject to the flat tax rate, but there is the possibility to offset losses with gains. Additionally, certain funds can offer tax advantages through the use of partial exemption or the option of capitalization.
On the other hand, bonds are subject to the flat tax rate, but there is no possibility to offset losses with gains. It is important to note that bonds often offer a lower return compared to stocks, but are considered a safer investment.
To build a tax-optimized portfolio, I recommend choosing a diversified mix of different investment forms. This way, you can benefit from the tax advantages of various investment forms and reduce your tax burden. It may also be useful to seek individual advice from a tax advisor to optimize your personal situation.
I hope that I was able to assist you with this information. If you have any further questions, please do not hesitate to contact me.
Best regards,
Anna Karpinski
