Offsetting capital gains against previous losses
August 18, 2011 | 25,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
Dear tax advisor,
I have indicated profits from the sale of capital investments and stocks in my tax return for 2010, for which I have already paid capital gains tax (25%). Since I still have old losses, which the tax office has also certified to me as remaining loss carryforward (from private sales transactions), I assumed that the tax office would offset the current profits with the old losses and refund the capital gains tax accordingly. However, this has not been done in the tax assessment just received.
Is this correct, i.e. is such offsetting not provided for or possible? Or would I have to specifically request the offsetting? Is there a specific form required for such a request?
Thank you in advance for answering my questions.
Dear Client,
Thank you for your inquiry, which I would like to answer based on your information and in the context of your use in an initial consultation as follows:
Old losses incurred by selling stocks or fund shares WITHIN the speculation period until December 31, 2008, can be offset against gains from the sale of stocks and fund shares until including 2013. However, offsetting such old losses against interest or dividend income is not possible.
Offsetting, for example, in 2010 would only be possible if you also declared this old loss in your 2008 income tax return. The tax office will then issue a loss determination notice. The loss shown in this notice can then be carried forward to the years 2009 to 2013 until it is used up.
I hope I was able to assist you.
Best regards,
Ulrich Stiller
Tax consultant/Diploma in Business Administration
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