Taxation on stock trades and dividends - Tax return

Stocks
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Now that I’ve become interested in investing, as a novice, I need to ask for some advice from the forum gurus so I don’t immediately go astray:

At the beginning of the year, I sold off S-Bank’s funds with a good profit and moved to invest with Nordnet due to lower fees. Initially, I only bought Super funds and ETFs with a monthly savings plan. Since buying/selling these Super funds is commission-free, except for currency conversions, do you think it’s wise to sell now while they are heavily down at -30% and then buy back with the amount the sale yields once it goes through, in order to generate capital losses for this year to offset previous capital gains? As far as I understand, this wouldn’t be considered tax evasion, as sales and purchases of funds take several days, or am I wrong about this?

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I received a pre-filled tax return in the mail and a question came to mind.

Last year, I participated in a share issue of a Swedish company. The price of one share was 4 SEK, and one share came with one TO1 warrant. I have now sold both the company’s shares and the warrants. The tax authorities are asking for the acquisition cost of these TO1 warrants. Should I enter 4 SEK, and do I need to convert that to euros and at what exchange rate? Or should I just use the acquisition cost presumption?

The tax authorities’ website states:

  • The acquisition cost is considered to be the price paid by the transferor for the warrant and any costs possibly charged to them. Expenses incurred from the sale can be deducted as expenses for acquiring income.
  • Alternatively, one can deduct the acquisition cost presumption if it is more advantageous for the taxpayer.
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How else do you mark stock trading costs in the pre-filled tax return, as Nordnet’s report includes them in the total sum of trades? Do I now just have to take a pen in hand and calculate them trade by trade? For example, I have bought shares for 1000 euros + trading costs 5 euros, so 1005 euros, and sold them for 1250 euros - trading costs 5 euros, so 1245 euros. I haven’t even thought about this in previous years, because trading has been quite limited, and correcting tax proposals is an extremely unpleasant task, at least for me :slightly_smiling_face: I am also not a fan of tax optimization, so I don’t really do tax-loss harvesting at the end of the year.

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No need to itemize, it’s enough if it’s included in either the purchase or sale price. :slight_smile: it serves the same purpose.

In theory, if there were a lot of ±0 trades, one could try to claim deductions by detailing the cost structure.

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Yeah, thanks for the answers. Had to think about this logic for a moment :slightly_smiling_face:

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I’ll post this in this thread as well, if anyone is wondering how to calculate/declare trades made through DeGiro on their tax return.

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Does anyone have experience with deducting IT equipment from taxes as part of investments?

What kind of deductions/exchanges can be made for things like a laptop/large screen from capital income?

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Keskustelua välittäjistä
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It seems that computers up to 1000€ can be deducted at once, and more expensive ones little by little. The deduction is similar to the home office deduction, meaning if there’s other use, it’s 50%. If it’s solely for stock market use and “there’s proof of acquiring significant additional income,” then 100% can be claimed. Internet expenses can also be deducted.

I guess no significant trade-off is essentially required for you to deduct it, as long as you can justify the purpose of use.

.snfufjdkdb → mandatory change required by the forum because I posted the same text first and it doesn’t allow reposting without changes :face_savoring_food:

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Has anyone had experience with taxing Belgian dividends?

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Does anyone know where to enter foreign withholding taxes in the Omavero (MyTax) service? Nordnet had collected withholding tax on Swedish shares, but that information is not visible in Omavero, even though the gross amount of the dividend has automatically appeared there. Domestic withholding taxes are already filled in.

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A question about the taxation of capital gains from securities and the right to deduct losses, and if I am interpreting the instructions for small disposals correctly in section 3.2 Arvopaperien luovutusten verotus - vero.fi.

It is clear that if the total disposal prices of all assets disposed of during the tax year are no more than 1,000 euros, the capital gain is tax-exempt. It is also clear that a capital loss is non-deductible if the total acquisition costs of all assets disposed of during the tax year are no more than 1,000 euros.

But what about a situation where the disposal prices are no more than 1,000 euros, but the acquisition costs are over 1,000 euros? This situation can arise if one sells both shares that have risen significantly and shares that have fallen significantly.

Invented example:
Share A: Acquisition cost 300, Sale price 600, Capital gain 300e
Share B: Acquisition cost 100, Sale price 250, Capital gain 150e
Share Y: Acquisition cost 400, Sale price 50, Capital loss 350e
Share Ö: Acquisition cost 300, Sale price 50, Capital loss 250e

Total sale prices: 950e < 1000e,
whereby the capital gain from shares A and B, total +450e, is entirely tax-exempt.
Total acquisition costs: 1100e > 1000e,
whereby the capital loss from shares Y and Ö, total -600e, can be deducted in taxation in subsequent years?

Can it therefore be concluded from those instructions that all capital gains from that tax year are tax-exempt in such a situation (because sales are under 1000e), but on the other hand, capital losses from shares sold at a loss can be deducted in subsequent years (because the total acquisition costs of the shares sold were over 1000e in the tax year)? And in that case, would the entire -600e be deductible, or would those capital gains affect it (even though they are tax-exempt), meaning only -150e would be deductible?

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That’s pretty bad. I’d do it by only selling A+B in year 1, and in year 2 I’d sell Y and Ö so that all sales in that year are definitely over 1000€.

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36

How does taxation treat foreign capital income vs. domestic capital income?
In my case, it’s about Swedish capital income.
Can these losses and gains be offset against each other, or are they their own types of capital income and offset separately for Finland-Finland and foreign-foreign?

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Hey, it’s the same deal if it’s not about dividends where taxation varies by country,

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So if a small investor buys a laptop, for example, for 500 euros and uses it partly for investing, would the tax authorities approve a 50% deduction, i.e., 250 euros? How do the tax authorities practically monitor these? Just keep the receipt?

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{“content”:“Reductions today generally work so that you have to keep receipts and your own notes for, I think, 5 years, and otherwise a short explanation of the deductions goes to vero.fi. Either it’s accepted as is, or in theory, the tax authorities can come asking for documentation for 5 years.”,“target_locale”:“en”}

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Just as @Jarnis said, keep the receipt. It’s probably a fine line when a deduction of a certain size is accepted, but I understand that 50% is a common one that is accepted if there’s some evidence of investment activity.

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I found an example in the in-depth tax instructions that suits my question. So, according to that, the situation I presented would apparently be possible (especially the last paragraph of the example).

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Question of the Day: If I buy shares of Altria listed in Germany (home country USA), will the dividend tax follow the German or US tax treaty?

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Here’s some help for the questioners: :slightly_smiling_face:

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