RetireJapan

I'm wondering if Bitcoin profits are eligible for furusato nozei.
I usually do furusato nozei on the tax through my work. This year, I have also made a profit on stocks and Bitcoin.

Am I right in thinking that profit from stocks doesn't affect the amount I can get on furusato nozei?

But profit from Bitcoin, because it is taxed as income will affect the amount I can get on furusato nozei?

nagasakirams wrote: ↑Fri Nov 05, 2021 1:11 am I usually do furusato nozei on the tax through my work.

Do you submit a tax return, or does "through my work" mean Nenmatsu Chousei?

Obligatory wiki link https://retirewiki.jp/wiki/Furusato_Nozei

Good question. Simply put, yes, if you make a realized profit and declare it properly, it does increase your allowed contribution amount. Conversely, a loss doesn't reduce it though.

https://furu-sato.com/magazine/211/

adamu wrote: ↑Fri Nov 05, 2021 3:40 am

nagasakirams wrote: ↑Fri Nov 05, 2021 1:11 am I usually do furusato nozei on the tax through my work.

Do you submit a tax return, or does "through my work" mean Nenmatsu Chousei?

Obligatory wiki link https://retirewiki.jp/wiki/Furusato_Nozei

Thanks. Yes. I do a tax return (kakutei shinkoku)
If I can use the tax I will pay on Bitcoin for furusato nozei, I have to use by the end of this year.

mighty58 wrote: ↑Sat Nov 06, 2021 1:38 am Good question. Simply put, yes, if you make a realized profit and declare it properly, it does increase your allowed contribution amount. Conversely, a loss doesn't reduce it though.

https://furu-sato.com/magazine/211/

Thanks.
That is what I suspected.
I have to declare it as I use a popular J Bitcoin exchange.

nagasakirams wrote: ↑Fri Nov 05, 2021 1:11 am Am I right in thinking that profit from stocks doesn't affect the amount I can get on furusato nozei?

I asked a similar question recently, and the conclusion is that stock capital gains and dividends will increase your allowance.

nagasakirams wrote: ↑Fri Nov 05, 2021 1:11 am Am I right in thinking that profit from stocks doesn't affect the amount I can get on furusato nozei?

I asked a similar question recently, and the conclusion is that since stock capital gains and dividends will increase your taxes, you will get a bigger furusato allowance too.

Tricky thing is knowing the exact numbers by Dec 31st.

TJKansai wrote: ↑Wed Nov 10, 2021 4:37 am

nagasakirams wrote: ↑Fri Nov 05, 2021 1:11 am Am I right in thinking that profit from stocks doesn't affect the amount I can get on furusato nozei?

I asked a similar question recently, and the conclusion is that since stock capital gains and dividends will increase your taxes, you will get a bigger furusato allowance too.

Tricky thing is knowing the exact numbers by Dec 31st.

It depends on whether you put them on your tax return. If you don't put them on your tax return, they won't increase your allowance. And if you *do* put them on your tax return, you should also claim the dividend deduction, which may decrease your allowance again...

adamu wrote: ↑Wed Nov 10, 2021 6:33 am It depends on whether you put them on your tax return. If you don't put them on your tax return, they won't increase your allowance. And if you *do* put them on your tax return, you should also claim the dividend deduction, which may decrease your allowance again...

The Dividend Deduction is only applicable to Japanese Dividends when you select the Aggregate Tax Method (Form B - Pages 1&2), as a (partial) normalization of the Marginal Tax Rate of the Aggregate Tax Method to the Flat Dividend Tax Rate (20.315%).
It does not apply:
If you select the Separate Taxation Method (Form B - Pages 1&2 And Page 3) to claim the Flat Dividend Tax Rate (20.315%)
On Foreign Dividends, as they are excluded from the Aggregate Tax Method, and you must select the Separate Taxation Method (Form B - Pages 1&2 And Page 3)

There is a discussion here

viewtopic.php?f=2&t=1356&p=14088&hilit= ... ate#p14088

There was a good discussion on working out the Furusato Nozei Allowance here

viewtopic.php?f=8&t=1740&hilit=furusato+nozei+medical

Unfortunately, the Tax Guide for the 2021 Kakutei Shinkoku probably will not be available until Jan 2022, but you can use the Tax Guide for the 2020 Kakutei Shinkoku to estimate the total Tax and therefore the total Futusato Nozei Allowance, here:

https://www.nta.go.jp/english/taxes/ind ... x_2020.htm

Unfortunately,, they do not provide details of filling out Form B - Page 3 in this document, other than the references to Page 3 on Page 15 of the doc. The details are only available in Japansese, here:

https://www.nta.go.jp/taxes/shiraberu/s ... /index.htm

I think you can assume that there are no major changes in 2021.

TJKansai wrote: ↑Wed Nov 10, 2021 4:35 am

nagasakirams wrote: ↑Fri Nov 05, 2021 1:11 am Am I right in thinking that profit from stocks doesn't affect the amount I can get on furusato nozei?

I asked a similar question recently, and the conclusion is that stock capital gains and dividends will increase your allowance.

Great to know! Thanks so much. I will find out more.