Offsetting losses

Losses on investments are not lost — but they cannot be set against just any gain. German tax law sorts capital income into separate "pools," and some losses stay trapped in their own pool (§ 20 Abs. 6 EStG). capi.tax keeps these pools separate for you.

The two rules that matter

  • Shares keep to themselves: losses from selling individual shares may only offset gains from share sales (§ 20 Abs. 6 S. 4 EStG). This still applies — and it is one-sided: share gains can be reduced by other losses, only the losses are ring-fenced.
  • Everything else shares one pool: interest, dividends, fund income, results from forward transactions and writer premiums all offset one another.

What changed in 2024

Until the end of 2024, forward transactions had their own pool capped at €20,000 per year, as did losses from the default of monetary claims. The 2024 Annual Tax Act (JStG 2024) removed both restrictions — retroactively in all cases still open. The legislature acted in response to constitutional doubts raised by the Federal Fiscal Court. Losses from forward transactions can once again be offset without limit against your other capital income.

Carrying losses forward

If a loss remains at year-end, it is not paid out but carried forward to the next year (§ 20 Abs. 6 S. 2 EStG). There is no carryback to earlier years.

With US brokers

A German broker runs these pools automatically and, on request, issues a loss certificate. Interactive Brokers and Tastytrade do not — you declare your gains and losses yourself on Anlage KAP, and the tax office performs the offsetting. A note for share and options traders: the US "wash sale" rule does not apply in Germany — adjustments from US tax paperwork must not be carried over.

capi.tax prepares your data and is not tax advice. Please review the figures and ask a tax advisor (Steuerberater) about your personal situation.

No tax advice - data preparation only — This tool is solely for preparing your transaction data and does not constitute tax advice. Calculations are performed automatically and without any warranty as to their accuracy, completeness or timeliness. Use is at your own risk; you alone are responsible for the correctness of your tax return. Verify all results yourself and consult a tax advisor if in doubt. Liability for any damages arising from use is excluded to the extent permitted by law.

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