Simple Q&A - Stock market investing

[TokyoWart]

Investment account outside Japan not subject to tax withholding.

In period Jan-Dec 2021 I'll get equivilant of 40,000yen in dividend payments.

I hold stock in the same account, that have fallen in value since purchase by 40,000yen.

If I sell that stock to realize the loss I will have made no money, profit, income or gains in this account for 2021.

Question:
If this is a net zero event.
Do I need to report the above transactions in my kakuteishinkoku? (I'm obligated to file each year.).

My experience is that you cannot use capital losses to offset dividends in an account outside Japan. You must use capital losses realized from an account inside Japan (and then they can be used to offset dividend or capital gains from either inside or outside Japan). The only thing that capital losses in a foreign account can offset is capital gains that occur in foreign accounts and I think you even have to do it all in the same year (it won't roll over for the 3 years that losses can rollover for Japanese accounts). This is one advantage a Japanese brokerage account has over a foreign brokerage account.

[Moneymatters]

Investment account outside Japan not subject to tax withholding.

In period Jan-Dec 2021 I'll get equivilant of 40,000yen in dividend payments.

I hold stock in the same account, that have fallen in value since purchase by 40,000yen.

If I sell that stock to realize the loss I will have made no money, profit, income or gains in this account for 2021.

Question:
If this is a net zero event.
Do I need to report the above transactions in my kakuteishinkoku? (I'm obligated to file each year.).

My experience is that you cannot use capital losses to offset dividends in an account outside Japan. You must use capital losses realized from an account inside Japan (and then they can be used to offset dividend or capital gains from either inside or outside Japan). The only thing that capital losses in a foreign account can offset is capital gains that occur in foreign accounts and I think you even have to do it all in the same year (it won't roll over for the 3 years that losses can rollover for Japanese accounts). This is one advantage a Japanese brokerage account has over a foreign brokerage account.

Thanks for the response and it's probabyl me not being clear but I think this is exact what I have.

The only thing that capital losses in a foreign account can offset is capital gains that occur in foreign accounts

Maybe someone with expereience of having both events in the offshore account, can chime in.

thanks again!

HUGE EDIT:
Sourced my answer from stark at reddit/japanfinance. I will need to report the dividends becuase...

"Losses incurred on stock traded through Japanese brokerages can offset dividend income (foreign or domestic). But losses incurred on stock traded through overseas brokerages cannot offset dividend income.
example."

HERE


I'm now I'm fairly sure this is what Tokyowart tried to tell me but I wasn't smart enough to follow along.

[John_conner]

Hi, after my Nisa and ideco, each month I have different amounts of money left to invest in a taxable account. Should I just buy more emaxi slim all country for simple investment? or should I look at another fund? many thank s

[RetireJapan]

Hi, after my Nisa and ideco, each month I have different amounts of money left to invest in a taxable account. Should I just buy more emaxi slim all country for simple investment? or should I look at another fund? many thank s

This is a perfectly sensible thing to do and is also the easiest. Just do that and get on with your life.

If you are weird and enjoy fiddling with your investments, feel free to do that, but you will probably make less money

[zeroshiki]

Hi, after my Nisa and ideco, each month I have different amounts of money left to invest in a taxable account. Should I just buy more emaxi slim all country for simple investment? or should I look at another fund? many thank s

This is gonna be a boring answer but... only you know the answer to that. eMaxis Slim All Country is a great choice for stability but if have the urge to make sector (NASDAQ100) or country bets (S&P500 is always a popular choice) then by all means go ahead. It always comes down to your appetite for risk. If you're happy with the stability you currently have (a full ideco and NISA is always a good sign) then by all means, go with your gut.

I personally put aside half my extra for all country but put in 25% to S&P500 and 25% to NASDAQ (I've actually played around with the FANG funds too but that might be more risk than people here are willing to take)

[EmaxisSlim Cultist]

Hi, after my Nisa and ideco, each month I have different amounts of money left to invest in a taxable account. Should I just buy more emaxi slim all country for simple investment? or should I look at another fund? many thank s

This is a perfectly sensible thing to do and is also the easiest. Just do that and get on with your life.

If you are weird and enjoy fiddling with your investments, feel free to do that, but you will probably make less money

You can even set up a tsumitate (non-nisa) and make those contributions automatic.

For passive investing, you may want to look at a REIT fund, for a little diversity (Emaxis Slim has 2 options).

Depending on your investing horizon, you may want to look at bonds funds (Emaxi slim again has a good option).

[John_conner]

Hi, what is the difference between the emaxi slim and Vanguard all country available on Rakuten?

Also is there a English tutorial on how to use the interface on Rakuten on how to buy?

thanks

[zeroshiki]

Hi, what is the difference between the emaxi slim and Vanguard all country available on Rakuten?

Also is there a English tutorial on how to use the interface on Rakuten on how to buy?

thanks

There's an explanation on the wiki: https://retirewiki.jp/wiki/Japanese_global_index_funds

Basically, the VT wrapper by Rakuten contains ALL the stocks in the world while All Country only has a subset

[John_conner]

Hi, what is the difference between the emaxi slim and Vanguard all country available on Rakuten?

Also is there a English tutorial on how to use the interface on Rakuten on how to buy?

thanks

There's an explanation on the wiki: https://retirewiki.jp/wiki/Japanese_global_index_funds

Basically, the VT wrapper by Rakuten contains ALL the stocks in the world while All Country only has a subset

many thanks, is one better that the other?

[adamu]

many thanks, is one better that the other?

I use eMaxis Slim because it's a proper fund, not a wrapper like Rakuten, and handles foreign withholding tax better (as far as I understand).