Unfortunately, losses and profits are not automatically charged between different banks. A Business loss certificate solves the problem.
The year is coming to an end and for tax purposes a few errands make sense. This includes, for example, obtaining a loss certificate. If a bank has found a loss on the sale of shares and at the same time profits from the sale of shares above the saver’s lump sum have been obtained from another bank, the loss can be offset against the income from the income tax return. Prerequisite for this is the loss certificate. However, this will only be created until 15 December.
Within a bank, losses on investments or sales of shares are offset against the corresponding interest or capital gains on shares, so that not too much withholding tax is paid. But a settlement between different banks is not. The excessively paid withholding tax can only be recovered in the context of the tax return with the investment KAP.
Business Loss certificate for tax return
Unfortunately, banks do not automatically issue loss certificates for deposits and investments and send them to their clients. That’s why every investor has to take care of themselves if he or she runs investments or deposits at several banks. Incidentally, this also applies to married couples who have cash deposits at various banks and are jointly assessed. The legal deadline for the loss certificate expires on 15 December of each year. Thereafter, the loss certificate is no longer issued retroactively and the offsetting is forfeited for the current year.
Incidentally, losses on the sale of shares can only be offset against profits from the sale of shares and not with profits from other investments, such as interest or dividends. The other investments can be netted with each other. Therefore, losses on the certificate are reported separately, ie a loss for stock sales and another for investments.
Business Loss carried forward by tax office
If the loss is higher than the investment income, the tax office makes a separate loss determination of the remaining loss. This residual loss can still be offset in the following year, provided that profits are again generated and stated in the tax return. Therefore, it is worth obtaining a loss certificate if the saver allowance was exhausted on yourself or the spouse and a loss was recorded at another institution.
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