buy, sell nokia share--tax balance in capital gain and loss

ahan · Post by **ahan** » Sat Dec 05, 2009 3:49 pm

Hello,

my friend has Nokia share, last year, he traded some nokia share and made some profit, so he is asked to pay capital income tax. but this year, he is in loss, he want to sell his nokia, iif he sell, he would like to know can last year profit deduct this year loss in the future? what is the regulation regarding this issue, anyone know this kind of thing?

Thanks!

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Rosamunda · Post by **Rosamunda** » Sat Dec 05, 2009 5:33 pm

Tell your friend not to sell his shares. He should keep them until the price increases.

I think the answer to your question is no.
Capital gains tax is due on capital gains in the year in which in is incurred.

As far as I know, only business have the possibility to offset losses from one year to the next...

If your friend needs more advice, he should send an email to (or visit) www.intofinland.fi or call the Vero office directly.

ahan · Post by **ahan** » Sat Dec 05, 2009 5:55 pm

Thanks! I will tell him.

Rip · Post by **Rip** » Mon Dec 07, 2009 8:41 am

The loss incurred can be deducted from profit gained within the same year or during the three following years. So your friend must pay his taxes due from 2008 in full, but he can deduct the loss of this year from any profit (not including dividends) he may gain within 2010-2012.

Rosamunda · Post by **Rosamunda** » Mon Dec 07, 2009 1:00 pm

That's good to know.... do you have a link to the Vero page on that?

THX

Rip · Post by **Rip** » Wed Dec 09, 2009 3:17 pm

penelope wrote:That's good to know.... do you have a link to the Vero page on that?

THX

Only in Finnish, at the bottom of the page: http://www.vero.fi/?article=4644&domain ... hentaminen

As a final note, if in the case in hand the person would make no net profit for example in 2010, but would have individual trades with a profit (and then others with a loss), the old losses would be deducted first (before the new ones) from the new profits. This would mean that part (or all) of the 2009 losses would be replaced by 2010 losses in tax accounting, which makes it less likely that they will in the end expire worthless. From any future profits always the oldest losses are deducted first (the tax administration people are supposed to do this automatically).

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