RetireJapan

I have a beginner question: I am thinking of investing outside NISA for the first time. I am still unsure about the tokutei account and tax.

Am I reading the settings page correctly, my account is set up so I the taxing is done automatically?
With these settings, is there anything I have to do for the year end tax? Like print and attach something.
I am asking to make sure (and have the courage to do it at last).

(Picture: Left is the Rakuten settings page and right is the purchase form)

donut wrote: ↑Tue Apr 13, 2021 1:20 pm
Am I reading the settings page correctly, my account is set up so I the taxing is done automatically?
With these settings, is there anything I have to do for the year end tax? Like print and attach something.
I am asking to make sure (and have the courage to do it at last).

Yep, it is set up correctly. My understanding is that the 20.315 % will be automatically taken for any capital gains you make on those investments you purchase in your tokutei account. In this case, you do not need to submit anything.

If you wanted to claim that capital gains tax back (offset losses), then you would need to submit at year-end.

beanhead wrote: ↑Wed Apr 14, 2021 12:51 am Yep, it is set up correctly. My understanding is that the 20.315 % will be automatically taken for any capital gains you make on those investments you purchase in your tokutei account. In this case, you do not need to submit anything.

Thanks! Then I will get started!

If you wanted to claim that capital gains tax back (offset losses), then you would need to submit at year-end.

Good hint. I have no idea about offsetting losses yet. I will try to find resources about this.

donut wrote: ↑Wed Apr 14, 2021 1:33 am
Good hint. I have no idea about offsetting losses yet. I will try to find resources about this.

Yeah, not something to worry too much about, I would imagine. Of course you only generate a gain or loss when you sell, or when you get a dividend if the stock gives dividends.

I know @retirejapan is a fan of dividend stocks.
I also think they could be a useful tool for retirement income. They allow you to generate some income without selling any of your portfolio. But they may not be the most tax-efficient way to invest...

beanhead wrote: ↑Wed Apr 14, 2021 5:35 am I know @retirejapan is a fan of dividend stocks.

I just love the smell of dividends in the morning!

Not the optimal way to invest over the long-term, but some people enjoy it. I invest mostly in index funds, and my play money goes into dividend paying stocks.

beanhead wrote: ↑Wed Apr 14, 2021 5:35 am Yeah, not something to worry too much about, I would imagine. Of course you only generate a gain or loss when you sell, or when you get a dividend if the stock gives dividends.

I am still starting out and 100% in funds. So until I sell, I hope nothing to worry about.

RetireJapan wrote: ↑Wed Apr 14, 2021 5:41 am I invest mostly in index funds, and my play money goes into dividend paying stocks.

This does sound like an interesting plan.

For now I plan to stick to index funds, but for the first time outside NISA.

Hi everyone,

I have a question about the Tokutei account. If you just have one account (mine is with Rakuten), would you get a refund on losses if they were less than the capital gains taxes you had paid on profits throughout the year? Capital gains tax always gets taken immediately, but I'm not really clear how losses are dealt with. Would the money get refunded to my Rakuten account in January the following year?

Andy

Andy. wrote: ↑Mon May 17, 2021 8:01 am Hi everyone,

I have a question about the Tokutei account. If you just have one account (mine is with Rakuten), would you get a refund on losses if they were less than the capital gains taxes you had paid on profits throughout the year? Capital gains tax always gets taken immediately, but I'm not really clear how losses are dealt with. Would the money get refunded to my Rakuten account in January the following year?

Andy

My experience with capital losses is all in my Nomura Tokutei account and they refund the excess tax paid at the end of December after the last day at which you can contract for a stock purchase or sale to be finalized for that calendar year (I think it was around December 28 or 29 in 2020). In my case i received the refund for excess tax paid on dividends not capital gains because I didn't realize capital gains in that account during the year.

Thank you very much TokyoWart.

Hi all, I have a couple of questions which have been on my mind for a while:

1. Offsetting losses. Let's say I own shares in A and B. Coming up to the end of the tax year, my shares in A have doubled in value, and my shares in B have doubled in value. Let's say I sell all of A -> this would make me susceptible to capital gains tax on the profit. Is there any downside to selling B at a loss and buying it back straight away? I would assume that on paper it looks like I've sold at a loss, and so that loss value offsets some of the gains taxes from A, but in reality my position in B hasn't changed.

2. Volatile tickers. Let's say hypothetically there is a ticker which fluctuates between $10 and $20 every day, and I have 1 share in it (bought at $10). I wait for it to reach $20 and sell (capital gains on $10 profit). When it hits $10 I buy it again, and sell again at $20. I keep doing this. I have heard in the US there is something called short term capital gains tax, and that this so called 'day trading' is not necessarilly recommended. But what about here? Apart from the minimal transaction costs (手数料) is there anything I am missing apart from the capital gains on each sell?

Thanks!