I am wondering about an aspect of taxes on shares. What exactly is taxed? How is the fee of my bank factored in? (Is it at all?). I am asking specifically for the German take on this, but I assume this is done more or less the same everywhere.
Assume I buy 10 shares from company X at a price of 10€ each. My bank (and/or stock exchange) charge me in total 10€ in fees. So after all, I have now 100€ value in shares for which I payed 110€.
Now assume I sell these shares after their value went up. Let's assume that I sell them for a price of 11€ per share. So I get 110€ for my shares. Anyhow, again, I am charged 10€ in fees.
So how is this taxed?
On the one hand, I made 10€. On the other hand, I payed 2*10€ in fees. Are the fees subtracted from what I "earned"?
In the first case, the state assumes that I made 10€ and taxes me on that - even though I essentially lost 10€. So - assuming ~26% taxes - I lost 12,60€.
In the second case, the state acknowledges that I lost 10€ - and I don't get to pay any taxes.
Or, in other words:
If I buy shares in 2020 for
A € and pay
B € in fees for this transaction, then go and sell everything in 2030 for
C € and pay
D € in fees, what exactly is going to be taxed?
- (C-D)-(A-B)? Sounds fair and reasonable to me.
- C-A? Not so nice depending on the fees.
- A-B? Nightmare. Doesn't take into account that I had to spend money to buy the shares in the first place.
- A? Nightmare plus I get to pay the fees on top.