Market prices have been falling in stock markets around the world.
Some investors living in Japan may have suffered losses on their financial assets due to the stock market decline.
The reason for the market decline is due to rising interest rates in the U.S., but strong medicine may be needed to fight off inflation.
By the way, I believe that for individuals to expand their wealth through investment, there are not only actions to increase their wealth, but also actions to actively protect their wealth. By actions to protect, I mean legitimate tax-saving measures.
The Japanese tax system allows, under certain conditions, the deduction of losses on the sale of stocks from gains on the sale of stocks, which results in a decrease in the amount of income subject to taxation, thus reducing the amount of tax due.
In addition, if the amount of stock losses for a year is large and there are still some losses remaining after deducting the losses from the stock profits, there is a system that allows you to carry forward such losses by filing a tax return.
And this system is valuable to investors because it allows them to deduct losses on stocks from their profits on stocks for the following three years.
Recently, KISHIDA cabinet announced a plan to increase investment income in Japan, creating favorable conditions for investors in terms of taxation.
I think it is very important for investment to be considered from the action of protecting assets.
〔The photo shows a streetcar in Hiroshima〕