Can I also deduct losses from stock transactions in my income tax return?
December 10, 2023 | 50,00 EUR | answered by Andreas Stricker
Dear tax consultant,
My name is Emil Fischer and I am currently preparing my income tax return for the past year. This year, I have conducted some stock transactions in which I unfortunately incurred losses. Now I am wondering if I can include these losses in my income tax return in order to reduce my tax burden.
The situation is as follows: Last year, I conducted a total of 5 stock transactions in which I incurred losses amounting to a total of 1000 euros. Since I would like to claim these losses for tax purposes to reduce my tax burden, I need your help to clarify if and how this can be done.
My concern is that I may not be able to include the losses from the stock transactions in my income tax return and therefore may end up paying more taxes than necessary. Therefore, it would be very helpful if you could explain to me if and how I can report the losses from the stock transactions in my income tax return and what documents or evidence are required for this.
I would greatly appreciate it if you could assist me with this question, as I want to ensure that my income tax return is accurate and complete. Thank you in advance for your support.
Sincerely,
Emil Fischer
Dear Mr. Fischer,
Thank you for your inquiry regarding the consideration of losses from stock transactions in your income tax return. I am happy to explain to you how you can claim these losses for tax purposes to reduce your tax burden.
In general, it is possible to claim losses from stock transactions for tax purposes. These losses can be offset against other positive income to reduce the tax burden. It is important to note that losses from stock transactions can only be offset against gains from capital assets and not against other types of income such as income from employment.
In your case, where you have recorded a total of 1000 euros in losses from stock transactions, you can declare these losses in your income tax return. To do so, you must enter the losses from the stock transactions in the corresponding line in the attachment KAP (income from capital assets). Additionally, you should attach the necessary evidence such as bank statements or securities settlements to prove the losses.
It is important that you accurately and completely declare the losses from stock transactions in your income tax return to avoid possible inquiries from the tax office. If you are unsure about how to declare the losses correctly, I recommend seeking advice from a tax advisor to ensure that your income tax return is error-free.
I hope this information is helpful to you. If you have any further questions, please feel free to contact me. Thank you for your trust and best wishes for your income tax return.
Best regards,
Andreas Stricker
