Ask a tax advisor on the topic of Income tax return

Returns from capital investment

December 14, 2011 | 35,00 EUR | answered by Michael Herrmann

Dear advisor,

In addition to my income, I have a stock portfolio. This portfolio generated a profit in 2010, but a loss in 2011. Can I offset the profit from 2010 with the loss from 2011?

Thank you.
Kind regards,
The inquirer

Michael Herrmann

Dear inquirer,

First of all, thank you very much for your inquiry, which I would like to answer based on the information provided and in the context of your commitment to an initial consultation. The response is based on the description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.

You need to distinguish between the income from the securities portfolio, including interest, dividends, etc., and the performance of the stocks.

Interest and dividends are ongoing income that is taxable upon receipt.

The performance of the stocks becomes taxable only upon sale. Gains from stock sales are taxable in the year of sale, reduced by any losses that may exist. A retroactive offset is not possible. Losses from sales in 2011 can only be offset against gains from the current year of 2011. Any remaining loss can then be offset against future gains from 2012 onwards.

I hope that with this information, I have provided you with a sufficient overview of the situation within the scope of your commitment and this initial consultation.

Sincerely,

Michael Herrmann
Tax advisor
Diploma in Taxation (FH)