This is a real-time automated feature that simplifies your tax calculations by offsetting realised losses against realised profits. This functionality is designed to ensure you only pay taxes on your net taxable profit.
❗️ Important
This feature is applicable only to users registered under Trading 212 FXFlat with tax country Germany.
How does it work?
When you close a profitable position, the system compares it against previous realised losses before calculating the taxes on said profit. Similarly, when you realise a loss, this will be offset against previous profits. All calculations occur when a position is closed.
💡 Example
- You earn €5,000 by closing a CFD position.
- You lose €2,000 by closing another CFD position.
- Offsetting allows you to subtract the €2,000 loss from the €5,000 profit.
- You only pay taxes on €3,000.
Which profits and losses benefit from loss offsetting?
These calculations are applied to realised CFD position results and interest on cash in Invest/CFD.
❗️ Important
Profits and losses in the Invest account are NOT included in the functionality.