Control series (7): Advertising costs: rausholen The optimum

Who shall state capital income on their tax return, can make all the costs claimed in return?

He must specify (income exceeding 1,421 euros for singles and 2,842 euros for married couples) in its tax return for the past year investment income, can make all the costs claimed in return. But you must be aware of: Dividends from German and foreign equities, the half-income method applies.

This means that although you only have to pay tax for the half, only half the income-related expenses can also deduct tax deductible in return. Attention! This does not apply interest rates. These must be fully taxed continue but can settle all related thereto costs. Who allocates its advertising costs wrong, wasted money.

However, the following applies: advertising costs, you can basically only settle when – in the long run – an excess of revenue can be expected over expenses (so-called profit). They must take into account only revenues and related expenses in the yield analysis and every investment must be considered separately.

Tax-free capital gains (speculative gains after twelve months) always remain on the sidelines. In addition, advertising costs and revenues must be in a reasonable relationship. At 1,000 euros dividends and 500 euros, interest per year related expenses of 5,000 euros is hardly enforceable.

As you can deduct your advertising costs will depend on the amount from:

No advertising costs or a maximum of 51 euros

Be your advertising costs no more than 51 euros (102 couples euros) per year, you need do nothing at all. In this case, the tax office automatically takes into account the standard amount of 51 euros – without splitting.
Advertising costs 500 euros

The Federal Ministry of Finance (BMF) has on advertising costs up to 500 euros (1,000 euros spouses) approved a simplified procedure (Ref .: IV C1 – A 2252 – 184/02). Money investors may cost in proportion to the income or market value of the shares on the settlement date (31.12.) Split.

Example: Max Clever and his wife achieved according to their custody account statement from 31.12.2005 the following investment income: 15,000 euros from interest, 10,000 euros of shares. Your advertising costs amounted to 850 euros last year.

Higher advertising costs

If you had higher expenses, you must assign it meticulously every investment individually. this is simply yet if costs specifically associated with a particular investment, such as lending rates. You should be careful, high expenses such as interest rates, possibly attributable to the fully taxable securities. Otherwise, you give away half.

It becomes more difficult when advertising costs incurred at the same time as dividends and interest, as custodian fees, property management fees, professional literature, tax consulting fees, computer programs, seminar costs, office costs. These expenses you need to split a flat rate.

To share your securities initially into two groups:

Group 1: securities whose income subject to the half-income method. These include shares and equity fund German investment companies, such as DWS or Adig well GmbH shares, cooperative shares, and participation certificates, granted in addition to the dividend, the right to liquidation proceeds, as well as income from private sales of shares and dividend-like jouissance (speculative gains).

Group 2: Full taxable securities, including fixed income securities, financial innovations, convertible bonds, income bonds, participation certificates as creditors paper (not equipped with a right to the liquidation proceeds), silent participations, participating loans and options and futures.

shareholders meeting

As a shareholder, you have the right to participate in the General Meeting of the company whose shares you own. This also applies to so-called small shareholders, who have only single action in the depot.