Benefit from losses in an investment account

Hello! Today is a post about tax cuts due to account loss. I will be glad to every like!

Benefit from losses in an investment account

Account losses

There are different investment results in different years. Sometimes the market goes up, and sometimes falls. So those years, when there was a loss on the account, you can use it as a tax reduction in profitable periods. This is called balancing..

Let's admit, you have in 2019 year there was a profit on the brokerage account 50 thousand. rub. And in 2018 - loss 20 thousand. Broker, as a tax agent, will keep from you 13% NDFL with 50 thousand. rub., ie. 6,5 thousand. rub.

But in this case, you can offset the loss of the last year and return the overpaid personal income tax. In our example, the taxable base 2019 years in the amount 50 thousand rubles can be reduced by 20 thousand loss in 2018 year and leave 30 thousand. BUT 13% from 30 thousand - 3,9 thousands.

The difference between the personal income tax actually paid and the payable can be returned. In our example, this is: 6,5 – 3,9 = 2,6 thousands.

That is, all the losses of past years (no more 10 Last) can be used as a reduction in the tax base for the last 3 years and refund overpaid taxes.

To do this, you need to submit a 3-NDFL declaration for a profitable year on the Nalog.ru website, for which you want to offset the losses of previous years and return the overpaid tax.

Tax return

Documents are attached to the declaration:

1. Help 2-NDFL from a broker, where the income for the profitable year will be indicated

2. Broker's statement of losses and report for the corresponding unprofitable year

In the declaration, the income for the profitable year is indicated first.. The data can be taken from the 2-NDFL certificate, previously requested from the broker. Usually, income from the sale and purchase of securities is indicated., circulating on the organized market. Also in the income section, the amount of the investment deduction is indicated - this is the amount of loss for previous years, but not more 10 years, and the deduction code is 201.

  10 IPO, on which you could earn

Next, you need to select the type of deduction - "Tax deductions for the transfer of losses".

The program will automatically calculate the amount of tax to be refunded. Check her, if everything is correct, attach the required documents, which I wrote about above, and send a declaration.

This declaration, like all others for deductions, undergoes a cameral review. (usually 2-3 months), after which the amount to be returned will appear in your personal account. To get it, you need to fill out an application for a return, where the bank details are indicated, and after a while the funds are credited to the account.

Basic rules and restrictions:

1. Losses can only be offset for 10 of recent years

2. Tax can be refunded for the last 3 profitable years

3. Losses on securities and derivatives are carried forward separately

4. Losses on IIS can not be transferred. A loss on a regular account cannot be transferred to income on IIS.

Even more useful information about investments and finance in my Instagram – @long_term_investments . Subscribe!

Scroll to Top