Stock Loss Carry Forward


Stock markets around the world have been declining.

Some investors living in Japan may have suffered losses in 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 inflation.

By the way, I believe that for individuals to grow their wealth through investing, there are not only actions to grow their wealth, but also actions to actively protect their wealth. By protective measures, I mean legitimate tax-saving measures.

The Japanese tax system allows, under certain conditions, losses from the sale of stocks to be deducted from gains from the sale of stocks, thereby reducing the amount of income subject to taxation and 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 the losses are deducted from the stock gains, 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 their stock losses from their stock gains for the following three years.

Recently, the KISHIDA Cabinet announced a plan to increase investment income in Japan by creating favorable tax conditions for investors.

I think it is very important to look at investment from the perspective of asset protection.

〔The photo shows a streetcar in Hiroshima〕