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Offset gains on one account with gains on another
Posted: Mon Jul 15, 2024 9:48 am
by Victor12
I did a quick search, but couldn't find answer to this question. I have two online securities accounts. Last year, I had gains on one account for which tax was withheld. However, I had losses on the other account. Is there anyway to offset the gains with losses and get the tax paid back?
Re: Offset gains on one account with gains on another
Posted: Mon Jul 15, 2024 10:31 am
by Tsumitate Wrestler
Victor12 wrote: ↑Mon Jul 15, 2024 9:48 am
I did a quick search, but couldn't find answer to this question. I have two online securities accounts. Last year, I had gains on one account for which tax was withheld. However, I had losses on the other account. Is there anyway to offset the gains with losses and get the tax paid back?
What type of taxable accounts are these? Different brokers?
The answer is usually no, which is why having a single taxable account is recommended.
Re: Offset gains on one account with gains on another
Posted: Mon Jul 15, 2024 10:35 am
by adamu
Should be possible by doing a tax return?
Re: Offset gains on one account with gains on another
Posted: Mon Jul 15, 2024 10:38 am
by Victor12
Thank you. Yes, these are two different brokers - Rakuten and SBI.
If it's possible, what kind of form would I need for the tax return?
Re: Offset gains on one account with gains on another
Posted: Mon Jul 15, 2024 11:41 am
by sutebayashi
Victor12 wrote: ↑Mon Jul 15, 2024 10:38 am
Thank you. Yes, these are two different brokers - Rakuten and SBI.
If it's possible, what kind of form would I need for the tax return?
In Japanese it’s called a 確定申告. You can do this online via the e-Tax system, or else show up in person at your local tax office and have them assist.
There is a section in this where you report income from various sources, including your securities accounts. You’d need to get the annual tax report from each broker and punch the numbers into the 確定申告. If you have other sources of income, such as handled on a 源泉徴収票 you’d need to have that handy as well to do the tax return correctly.
Re: Offset gains on one account with gains on another
Posted: Mon Jul 15, 2024 11:47 am
by Tsumitate Wrestler
Victor12 wrote: ↑Mon Jul 15, 2024 10:38 am
Thank you. Yes, these are two different brokers - Rakuten and SBI.
If it's possible, what kind of form would I need for the tax return?
What type of accounts?
Tax reporting account with tax collection (特定口座 源泉徴収あり)
Tax reporting account without tax collection (特定口座 源泉徴収なし)
If you have a tax-reporting account you can file a capital loss, but it will not be automatically done.
Generally, if you have a specified account with withholding tax, you do not need to file a tax return, but if the capital losses in your account exceed the capital gains, it is better to file a tax return .
By filing a tax return, you can offset your losses against the capital gains from special accounts and general accounts at other securities companies, and interest and dividend income from listed stocks, etc. , and you can carry forward any losses that you are unable to deduct. Carrying forward losses means that you can deduct losses from capital gains from listed stocks, etc., as well as interest and dividend income from listed stocks, etc., for three years from the following year.
https://biz.moneyforward.com/tax_return ... 2400/#i-11
Re: Offset gains on one account with gains on another
Posted: Mon Jul 15, 2024 1:18 pm
by Victor12
sutebayashi wrote: ↑Mon Jul 15, 2024 11:41 am
Victor12 wrote: ↑Mon Jul 15, 2024 10:38 am
Thank you. Yes, these are two different brokers - Rakuten and SBI.
If it's possible, what kind of form would I need for the tax return?
In Japanese it’s called a 確定申告. You can do this online via the e-Tax system, or else show up in person at your local tax office and have them assist.
There is a section in this where you report income from various sources, including your securities accounts. You’d need to get the annual tax report from each broker and punch the numbers into the 確定申告. If you have other sources of income, such as handled on a 源泉徴収票 you’d need to have that handy as well to do the tax return correctly.
Thank you for the detailed information.
Re: Offset gains on one account with gains on another
Posted: Mon Jul 15, 2024 1:20 pm
by Victor12
[quote="Tsumitate Wrestler" post_id=40161 time=1721044026 user_id=3553
What type of accounts?
Tax reporting account with tax collection (特定口座 源泉徴収あり)
Tax reporting account without tax collection (特定口座 源泉徴収なし)
If you have a tax-reporting account you can file a capital loss, but it will not be automatically done.
Generally, if you have a specified account with withholding tax, you do not need to file a tax return, but if the capital losses in your account exceed the capital gains, it is better to file a tax return .
By filing a tax return, you can offset your losses against the capital gains from special accounts and general accounts at other securities companies, and interest and dividend income from listed stocks, etc. , and you can carry forward any losses that you are unable to deduct. Carrying forward losses means that you can deduct losses from capital gains from listed stocks, etc., as well as interest and dividend income from listed stocks, etc., for three years from the following year.
https://biz.moneyforward.com/tax_return ... 2400/#i-11
[/quote]
Thank you. It's a Tax reporting account with tax collection (特定口座 源泉徴収あり). I'll go to the tax office after collecting documents from the security companies.