Loss suffered from transfer of securities

By transfer of securities not only the gains received as a result of a transaction but also the transactions suffering loss are taken into account. And it is not relevant if the loss by transfer of securities incurred during the period of taxation or it incurred earlier in previous years. In the last case the loss must have been declared already and it is carried forward from the previous periods of taxation.

If loss from transfer of securities is bigger than gains received from transfer of securities in the same year, the amount of loss exceeding the amount of gain may be deducted from the gains received from transfer of securities during the subsequent periods of taxation.

Besides loss from the transfer of securities also loss incurred in charging the income tax on payments received from equity and liquidation proceeds of the legal person may be declared.

Question: How does it affect charging a tax, if, in the course of the bankruptcy proceeding a shareholder's shares are cancelled?

Answer: In the course of the bankruptcy proceedings the shares cannot be transferred and the loss cannot be declared. If, after satisfaction of a claim, the shareholder will receive distribution ratio, and the distribution ratio will be taxed in the part exceeding the acquisition cost.

Loss incurred from transfer of securities may not be taken into account by reduction of gain received from transfer of securities, if:

• loss incurred by transfer of securities to a person associated with the taxpayer at a price below the market price, or
   
• loss incurred by transfer of securities from a person associated with the taxpayer at a price above the market price.

In the event of the transaction with the associated persons a symbol “X” should be entered in column 8 of the table 6.1 of an income tax return:

• if a security giving the right to receive dividends was acquired within 30 days before the date on which the persons with the right to receive dividends were specified and it was transferred on the date on which the persons with the right to receive dividends are specified, or
   
• if a security giving the right to receive dividends was acquired within 30 days before the date on which the persons with the right to receive dividends were specified and it was transferred within 30 days after the aforementioned date.

In case of the last two transactions suffering loss, a symbol “X” should be entered in column 9 of the table 6.1 of an income tax return.

Question: Is it possible to declare the option premium of shares with the right to receive dividends, if the shares were sold with loss within 30 days after the date on which the persons with the right to receive dividends were specified?

Answer: As in this situation the loss from the transfer of securities cannot be taken into account, also the option premium, which would increase the loss, cannot be taken into account.