I myself am pursuing the same goal, to grow investment capital and pay small dividends annually - hopefully larger ones later.
However, I myself came to the conclusion that there’s no point in calculating these small details unless the big picture is working. A couple of percentage points here and there doesn’t mean anything at all, and neither do taxes really, if you get, say, 20% returns
Hi
I own a dividend-paying ETF (VGWD) at OP, and it recently paid a dividend.
My attention was drawn to the fact that the dividend was paid in full to my account, without any taxes or similar deductions.
For dividends from Finnish stocks, withholding tax is declared and taken, and for dividends from US stocks, source tax is also taken. So why does the dividend from this ETF come directly to my account in full?
Mainly, I’m wondering if this requires any action from me? Or does the information go from OP to the tax authorities, and eventually, the tax authorities collect the tax on these ETF dividends?
@oho - this should be correct.
In Ireland: VGWD appears to be an OEIC (Open-Ended Investment Company) fund registered in Ireland. Ireland’s friendliness extends beyond pubs, and these funds do not withhold tax on income distributions for foreign investors. The fund may pay withholding taxes on the profit distributions of its own investments (“fund-level”), but this is the fund’s problem, not yours.
In Finland: No tax prepayment (ennakonpidätys) is made on the payment when it is an foreign fund. The reason behind this is that the payer is liable for tax prepayment, and a foreign fund is not liable for tax prepayment in Finland. OP’s role is mainly to transfer the money forward.
Just one clarification: you use the term “dividend”. Technically, it is an income distribution from the fund. The most important difference is that income distributions are taxed 100% as capital income. Dividends from listed companies are only partially taxable income (85/15).
I take no responsibility here, but it should be correct that you receive all the money now. Your task is to ensure that the income is reported correctly on your spring tax return. The assumption is that OP will report them for taxation purposes. If the sum is large, additional advance taxes may be considered to avoid additional taxes (jälkivero).
I’d like to ask about an inherited investment property that has been renovated. The renovation costs are higher than the property’s price. The intention is to sell the property without tenants at any point.
Can this loss be deducted from capital income, which consists of dividends and capital gains?
Thanks in advance.
You’ve described the situation very briefly, and based on your message, all factors affecting taxation can only be guessed at. The situation sounds peculiar if the renovation cost more than the apartment’s value. This will likely raise questions with the tax authorities as well. (Why and how was it renovated with a sum that the selling price does not cover.) But if we forget these intricacies, then…
The order of events usually matters quite a bit, as does rental activity. I assume the estate has been divided, as you’re already talking about an inherited apartment.
If it truly is an investment apartment that has never had tenants, the renovation costs can still be added to the acquisition cost, i.e., the value confirmed in inheritance taxation. Thus, you can deduct the loss arising from capital income.
Does anyone on the forum have recommendations for competent accounting firms for an investment company engaged in day trading? Day trading is mainly done with derivatives. I’ve sent out some inquiries, but a few have already replied that it’s not their specialty.