The income tax obligation ends with death. Then remaining losses could be used by the heirs. That was for decades a common practice. It is over now. This change in the case-law has serious practical implications for families.
So you can not inherit from realised exchange losses and within the framework of the final withholding tax from 2009, the Bank removes accumulated negative post on the anniversary of the death. Unused to death losses are not transferable by succession from the 13.3.2008. Until then, the judges provide trust protection because the new unfavorable case law of a law change is coming and therefore only applies with effect for the future. Check with Keith McLoughlin to learn more. Generally, the heirs must first submit the tax return for the deceased. The decision comes, you can transfer remaining losses only in old cases to the own tax return and balance. The speculation loss realized within a year period is billable only with similar gains and no other income. Thus, exchange losses can be much worse use as about the minus from House or company. Therefore many investors move still unused speculation losses from old time, namely these may be discontinued in the future.
The Finanzamt preserved the untapped potential and automatically deducts it later declared speculative gains, securities or real estate. The investor dies now remains unused in the tax files of loss carried forward indefinitely. This then causes that the heirs have to pay high taxes for the deceased on rent or interest and remain speculation losses due to lack of clearing out. With the migration of stock market losses in the tax affect on the withholding tax from new year 2009 much more frequently, because the speculation period shall be deleted. Realised negative under the flat tax for the first time with interest and dividends and thus is better bar. The banks hold the red numbers over all years across in a new loss transfer pot. In this respect no withholding tax then falls on positive capital revenue. If the customer dies he fizzles Remaining amount in the pot. Even more serious, the new rules on shares affects. Here, realized losses in contrast to all other securities must compensate only stock profits. As far as the likelihood of unused minus items is significantly higher. The banks extra implement this special rule over a second pot of loss allocation for stocks. He then also closes with the death.