Hello 👋 ,
This article helps you understand how capital losses are handled in the Waltio tool and how they should be reported.
There are several possible situations 👇
▶️ You have realised capital losses and capital gains in the current tax year
The capital losses realised during the year are offset against your realised capital gains. If you have entered your data correctly in our tool, we will provide you a calculation of your taxable capital gains to be reported to the tax authorities.
✅ This given capital gain amount is already deducted from the capital losses.
Example:
You have realised capital gains totalling €20,000 in the year 2023.
You have realised a capital loss of €2,000.
Our tool will show you a total net capital gain of €18,000 to be declared.
💡 So you don't have to declare your capital losses, only the capital gains you made by following the declaration guide.
▶️ You have only realised capital losses in the current year (no capital gains).
If you have no capital gains then you don't have to declare your capital losses. The Belgian authorities only require capital gains to be declared.
However, we advise you to keep the amount of your capital losses as these can be carried forward for the next 5 years.
Example:
You have realised capital gains totalling €10,000 in 2023.
You have realised a capital loss of €11,000.
Our tool will show you a total net capital gain equal to €0.
💡You can carry forward the remaining €1,000 of capital losses over your next 5 years.
▶️ You have made capital losses in the last 5 years
If you have realised capital losses over the previous 5 years, then these can be used to offset your capital gains in the current year.
💡 It will be possible to carry them forward to reduce the amount of your taxable capital gains and therefore pay less tax.
Example:
You have realised capital gains totalling €10,000 in the year 2023.
You have realised a capital loss of €4,000 in the year 2022 which has not yet been carried forward.
💡You can carry forward this former capital loss for this year 2023, so your total net capital gain will be equal to €6,000.
To carry forward your capital losses: follow our declaration guide showing the steps.
If you have any further questions, please contact us via the chat just below on the right of your screen! 💬
Waltio team