German derivatives traders are shocked by new tax law. It was pushed almost secretly through parliament during xmas holidays. This tax code amendment (..to diminish speculation..) was hidden in an amendment of a law concerning e-mobility. The new regulation will effectively tax you at more (much more) of your total net profits: It requires annual summing up of all winning trades (separate legs) and separately all losing trades (losing legs). Spreads or multi leg trades (iron condors etc) are 2 ore more separate trades. Now you deduct the sum of your losing trades -capped at 10k total- from the total of your winning trades. This final sum is taxed at 26.3% . In other words: All of your winning trades are taxed at 26.3% - and you are allowed to deduct a total of 2,630.00 € instead of all of your losing trades/legs. This makes futures, options and cfd trading impossible. This applies naturally only to individual persons, not legal entities.
It never seizes to amaze me how politicians are able to construct complex laws without any real purpose. If they want to ban derivatives trading then ban it. Don't do this shit where people can end up with a massive tax debt if they are not aware of the changes.
They're coming for us. Retail trading might be around for another five or ten years, but the next major market dislocation will see politicians out for blood. Wall Street will sell retails down the river to save themselves - with zero comms they aren't making money from us anyway, and it will have the handy effect of forcing everyone into "authorized" investment products or funds. Everyone here had better be planning for a career change.
Don't get too upset @Specterx. Since 99% of us retails are losing money, it only matters to 1%. If you are that 1% you know how to become a legal entity.
Minimum capital requirement would be around 250 k to make this a winning proposition - otherwise the cure would be worse than the illnes.
No fucking way. Big corps, wall street, billionaires OWN the tax code. Never gonna change. 1256 contracts are not going away. Transactions tax? I doubt it. EU tax law is a completely different animal. AFAIK, the State of New York 100% remits transactions taxes already on the books. "There has been a large debate regarding the stock tax, which has been proposed for the New York City Stock exchange. Although there is a stock tax currently imposed, the taxes have been given back to taxpayers in rebate form, for almost thirty years. In fact, that stock tax rebate is refunded one hundred percent. Many argue for the state to keep at least a portion of the tax, to help with the states major budget shortfalls." https://tax.laws.com/local-and-state-taxation/new-york-city-stock-transfer-tax