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fs-public / ib-analyzer

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Erroneous interpretations of Czech tax laws? #27

Open vitawasalreadytaken opened 7 months ago

vitawasalreadytaken commented 7 months ago

Hi, Thank you for making this work open source!

I was surprised by some statements about cap gains taxation in the readme. I am not an accountant, but I have spent a lot of time figuring this stuff out in the past. FWIW, my accountant has the same understanding of these two issues:

In Czech Republic, capital gains are: Matched in a first-in-first-out (FIFO) fashion,

AFAIK this is not the only admissible method. For each fiscal year, you can elect either FIFO or weighted average as your valuation method.

All securities (stocks, bonds, derivatives, ...) are taxed together for as long as they have an ISIN.

I am 99% sure that this is not the case, and each asset class is taxed separately. E.g. you cannot use losses in derivatives to offset gains in equities.

I just wanted to mention these things as they jumped off the page when I looked at the readme. Hope this helps!

fs-public commented 7 months ago

Hi Vita! Thank you for your comment, very appreciated!

Regarding your points:

  1. FIFO/weighted average: you're correct, I'll make sure to update the Readme and/or allow weighted average method in the future.
  2. Asset class separated: I don't really think so here. We have the notion of "cenný papír" (security), with laws and guidance papers regarding what comprises and what does not comprise the security being updated every year or so. Generally, derived securities ("odvozený cenný papír") are as far as I know treated the same way as other securities. In similar fashion, it would make little sense not being able to offset equity gains with bond losses.
fs-public commented 5 months ago

Bumping up--it appears that indeed, the guidance has changed recently and the amount of cases derivatives can be offset by ETFs/stocks has lowered by a lot. Needs updates there

vitawasalreadytaken commented 5 months ago

Hi, I'm sorry for the belated reply. Was waiting to finish my tax return so I could come back with my latest findings 😅 So, I have no experience with bonds vs. equities, but my accountant has reconfirmed to me that I cannot offset equity gains with losses on derivatives – in my case these were options on equities. But I'd like to understand these rules better myself. Do you have any links to the published guidance? (I understand Czech)