Stock Trading Taxation

Does this case include foreign shares?

In my case, Nordnet does not report foreign shares.

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I do not own foreign stocks in Nordnet due to their predatory pricing.

ETFs listed in Germany (held in Nordnet) were found on the report.

EDIT: Mitä Nordnet raportoi veroviranomaisille? | Nordnet

\u003e Nordnet reports to the tax authorities capital gains and losses incurred during the year, paid dividends and withholding taxes, domestic holdings at the end of the year, and possible investment loan interest and additional service charges. You should therefore only check that the reported information is correct in your tax return and supplement any foreign holdings and certain fund holdings at the end of the year.

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Does anyone in the thread know if an internal share exchange within the company (shares of the same company, but to a different series: from a preference share to a so-called normal share) causes a taxable event?

Redemption of shares of another company with one’s own certainly constitutes such an event.

No tax implications

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It is always advised to perform tax loss selling in such a way that you sell today, wait a day, and then you can buy back. I started thinking, doesn’t the same logic work such that you buy more today, wait a day, and then sell the shares acquired earlier (at a higher price than the current rate), and on a FIFO basis, I get the losses for taxation?

Is there a flaw in my logic?

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No, it was interpreted correctly. That just requires free capital.

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…or a credit limit in Nordnet :slight_smile:
Thanks!
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In the scenario “Buy an additional lot first, sell the (oldest) share lot”, if the price rises during the same day the additional lot is bought, you have a valid non-tax-technical reason to lighten your oldest purchase lot during that same trading day, even if the sale of the oldest lot would be unprofitable. You bought cheaper than you sold. As long as the rise is sufficient, considering brokerage fees, to put you sufficiently in profit when comparing the purchase price and sale price made on the same day. If the price did not rise sufficiently after buying the new lot during that trading day, then it would be safest to wait before selling.

Generally, many sources state that you don’t even need to wait one day in between, because by waiting even until the next trading day, you have been exposed to market risk. Especially if, for example, the price were to fall sufficiently from your previous selling price at the start of the very next trading day, you would also have a non-tax-technical reason to buy back the share lot.

Edit: Veron kiertämissäännöksen soveltaminen - vero.fi \u003c-- this page has been referred to earlier in this discussion.

Edit2: typos.

\u003e KHO 2009:53
\u003e
\u003e The shares had been bought back only on the day following the sale. The sale and purchase of the shares were normal stock exchange transactions carried out on a securities exchange. The round-trip share transaction was not considered tax avoidance, and the capital loss arising from the sale of shares was accepted as deductible.
\u003e
\u003e KHO 2012:56
\u003e
\u003e A bought back the same number of identical shares on each selling day. The buy-back prices had differed only slightly from the selling prices. Immediate sell and buy orders made on the same day on the stock exchange were considered tax avoidance when the taxpayer did not present a reason independent of taxation for the share transactions, which occurred at the end of the year and when it was known that the taxpayer had a significant capital gain from which capital losses could be deducted.

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I filled out my tax return.

Will the home office deduction also be completely removed from capital income in the future, now that the right to deduct it from earned income is being removed?

I didn’t claim the home office deduction under capital income this time anyway, as the interpretation had become stricter, deeming investing a passive activity if one ‘trades a few times a month and receives dividends’. An interesting criterion, in itself, to view the matter through the lens of trading activity. If it’s about direct shareholdings, it would be desirable to have done some work to support one’s investment decision. The actual buying/selling doesn’t require much work, but investment research can be done for days on end.

One can also consider the matter from the perspective that, for example, Oldenburg’s Phoebus Fund trades relatively little. However, I would still see the person doing work in managing the fund.

There’s no need to ponder these things anymore if they remove the entire deduction.

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Well, it seems the home office deduction will be abolished completely then.
It got strange last year when home office expenses were directly compared to the frequency of pressing buy and sell buttons. I don’t see any expectation that the statutory deduction would remain in force in any form in the future.

This year, we’ll try for 240 euros for both earned income and capital income, and after that, it’s sayonara.

Thanks for the correction, but it’s somewhat clear from my own text that I meant precisely the statutory home office deduction. Separate, actual (and receipted) expenses can still be deducted in the future, and perhaps that’s how it should be. I’m perhaps not surprised that the statutory one is being abolished, because during the pandemic, at the latest, it became quite a widespread practice.

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Hmm, the home office deduction is not being removed. Only the standard home office deduction is being removed. But you can still try to deduct based on actual costs. Or at least this is the current information until it becomes clearer.

If deducting based on actual costs, the deduction might then be smaller than the standard one, especially for apartment dwellers who probably cannot make depreciation deductions from their housing company shares.

Thanks for the correction, but it should be somewhat clear from my own text that I meant precisely the standard home office deduction.

True, when I read it again, but that initial “completely removed” sounded like you meant both. But it’s clear now :+1:

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How does dividend taxation currently work with French stocks like LVMH? Is 30% withheld from a Nordnet brokerage account, or does it follow tax treaties? If too much is withheld, how has the reclaim process for over-taxed dividends worked?

I sold funds, which generated a profit of about 2500€. I have an equity savings account (osakesäästötili) that has been empty for a couple of years and has a loss of 400€ there. Aren’t the losses from the ESA normally deductible from capital income?
I have a vague recollection that I’ve seen a different interpretation of this matter here sometimes.

@Osinkosijoittaja I closed the ESA today.

A loss-making share savings account must be closed, thereby realizing the loss, in order to utilize it for tax purposes.

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Let’s ask now before I start thinking further…
A dividend-paying ETF. From a tax perspective, is it treated like any other stock?
Is it taxed as capital gains and according to the tax treaty of its country of domicile?

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Case: I sell 100 units of an ETF fund, after which I have 900 units left. In Nordnet, sales seem to follow FIFO, how is taxation handled?

Edit: So, for those 100 units sold, is it examined how much profit they made and taxed accordingly?

Yes, a capital gain is calculated for each sold lot. Just like with stocks. Let’s say you initially bought 60 ETFs at a price of 100 euros, then you bought 940 ETFs at a price of 200 euros. And now you sell 100 ETFs at a price of 300 euros, then for 60 ETFs the capital gain is 60200e and for 40 ETFs it’s 40100e, and you can deduct selling costs. And buying costs are included in the acquisition cost, so they are also deducted.

Did this answer your question or was something else unclear?

I reviewed last year’s transactions for tax information and noticed that the cash balance held in dollars at IBKR generated more profit than usual in euros last autumn due to the strong dollar, and since trading was otherwise minimal last year, the account’s appreciation is largely based on this. It seems that profits resulting from currency exchange rate changes of these cash positions held with brokers are taxed in full, meaning they are considered income for the purpose of acquiring income? Otherwise, these would be tax-free up to 500 euros.

https://vm.fi/-/tuloverotukseen-ehdotetaan-muutoksia

“The home office deduction could still be obtained if it is for earning income other than salary income.”

Oh, so the home office deduction for stock traders is apparently remaining?

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