Application required by December 15: Multiple accounts? This is how profits and losses are offset
If you make profits and losses in portfolios with different banks, you cannot have them automatically offset against each other. Investors must take action themselves - and keep an eye on a deadline.
In Germany, gains from trading stocks, funds, and other securities are subject to taxes, including a withholding tax, solidarity surcharge, and church tax, totaling up to 27.99 percent. However, if losses from capital investments occur in the same tax year, they can offset gains and reduce tax liability. If gains and losses occur with different providers and in various accounts, investors must apply for a loss certificate from each bank where losses were incurred by December 15.
The loss certificate is then used in the tax return to allow the tax office to offset gains and losses, and any overpaid taxes are refunded. If the deadline is missed, losses can still be carried over to the next year and offset against future capital gains.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
