Germany tax regulations: How do I deal with a loss for a year?

Hi guys,

maybe one of you has already dealt with this. I find many articles on the internet for how to deal with a broker in a (from my point of view) foreign country. Some also deal with how to deal with losses, but only as far as German banks/brokers are regarded.

Now I expect to make a total loss in 2020 in Trading212.

I plan to stay here and am confident I will make up for those losses next year.

How do I deal with that in my taxes?

Let’s take an example:
2020 result: -2000€
2021 result: +5000€

I assume I can balance those with each other. Which leaves me with having to pay taxes for the result of 3000€.

Now can I just report my result to the IRS by using the tax statement Trading212 provides? (see https://helpcentre.trading212.com/hc/en-us/articles/360008145758-How-to-get-a-Tax-Statement-for-the-financial-year-)

At German banks I’d need a so called “Verlustbescheinigung”, but I’m not sure if Trading212 provides that as well for a foreign bank.

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+1 I would like to know if there’s a Bescheinigung provided.

Just for clarifications sake, did you actually executed trades in the loss direction? or do you by just looking at current investment value thinking you are in the loss?

Because for the sake of tax reporting unrealised gains/losses has no effect.

so if I write your example in details here does it look like:

in 2020,
buy X for 10000
sell X for 8000
in 2021
buy X for 8000
sell X for 13000

if not, and if you’ve just bought X for 10000 and still holding same stock in 2020/21 you have not made any gain/loss until you sell at a loss or profit.

No no, I’m not talking about my current result. I mean actually realized losses. In my cases that’s stocks I sold for less than what I bought them for as well as CFD positions that I closed with a negative result.
If I hadn’t sold/closed anything yet that would of course be irrelevant for now.

If I made a total gain in 2020 it would be easy. But in case of a loss in 2020 I don’t want to pay unnecessarily high taxes for gains 2021 because I failed to do some formality in 2020.

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These German tax details craziness are almost making me move to TradeRepublic :persevere: