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  #41  
Old 17.11.2016, 01:14
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Re: Interactive Brokers account

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If I am a small investor and I buy 5000 CHF worth of stock and after one month stock doubles and I sell for 10000 CHF, will the tax office bother to tax me? Assuming that was my only trade for the year.
Here's a story for you from not so distant past: "Eine schockierende Steuerrechnung erhielten so ein Unternehmer im Kanton Zürich, der mit zwei Transaktionen einen Kapitalgewinn von mehreren hundert Millionen erzielt hatte" [http://www.weltwoche.ch/ausgaben/200...willkuer.html]

When the numbers are big enough to catch their eye, even a single sale can be the trigger.
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  #42  
Old 17.11.2016, 12:18
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Re: Interactive Brokers account

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Calculating gains just for the current year sounds more logical to me. If you bought a security long enough ago you might not even have nor be required to have any documents about its original price anymore. But I don't know exactly how they would calculate the gain and tax, and hope to never have to find out.
So let's say that you buy a stock for 100 and hold it. After 20 years the stock is now worth 1000. You decide to sell it. If we count the realized gains as sell Price - buy Price then we get 900. When we Count from the start of year, then it's 0. A huge difference. Where should I look for the correct answer?
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  #43  
Old 17.11.2016, 12:35
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Re: Interactive Brokers account

900
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  #44  
Old 17.11.2016, 12:41
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Re: Interactive Brokers account

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So let's say that you buy a stock for 100 and hold it. After 20 years the stock is now worth 1000. You decide to sell it. If we count the realized gains as sell Price - buy Price then we get 900. When we Count from the start of year, then it's 0. A huge difference. Where should I look for the correct answer?
Ask tax consultant or better yet - your local tax office. Mine was always helpful and friendly on the few times when I had to ask them something.
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  #45  
Old 17.11.2016, 12:55
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Re: Interactive Brokers account

Any ideas on if I am a very regular trader (250 - 500 trades per year), but income from trading is far less than gross household income?

I guess that should also be safe due to the fact that gains from trading are minimal compared to the main family income?

thanks for any input
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  #46  
Old 17.11.2016, 13:04
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Re: Interactive Brokers account

You're likely not protected by the safe rules then especially if you don't hold same security long enough, so their hands are free to subjectively judge you however they wish. Small amount of gains would likely not get you into trouble yet. From a few articles and cases I've heard they are more after people making 100k+ profits on trading
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  #47  
Old 17.11.2016, 14:19
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Re: Interactive Brokers account

The ratio of gains to your household income or wealth is probably not as decisive as the sheer amount of tax that they can extract from you. In the article that I've already mentioned, someone got slapped already at a measely 2.1% yield
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  #48  
Old 17.11.2016, 23:07
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Re: Interactive Brokers account

thanks for the info
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  #49  
Old 20.11.2016, 19:13
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Re: Interactive Brokers account

Guys, what you think about coming OECD automatical exchange - will be IB UK subject to it or they working under US legislation in this case ( custodian if I`m correct - IB LLC) and only FATCA influenced?
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  #50  
Old 20.11.2016, 19:23
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Re: Interactive Brokers account

If you have nothing to hide, that shouldn't worry you at all.
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  #51  
Old 20.11.2016, 19:31
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Re: Interactive Brokers account

There could be potential complications ))
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  #52  
Old 20.11.2016, 19:37
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Re: Interactive Brokers account

How?

OECD automatic exchange regulations are all about forcing financial instituations of participating countries to rat you out with all accounts to your tax residence country's tax administration - presumably Switzerland if you live here.

If you were completely honest with them about your foreign held assets, filed tax returns completely and truthfulyl as you were supposed to, nothing's gonna change for you.

Only people with undeclared assets will suffer. Are you one of them?
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  #53  
Old 15.01.2018, 06:19
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Re: Interactive Brokers account

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Thanks!
They gave me a citibank account, but the iban starts with GB.
Hence UBS automatically transfer the money from CHf to GBP, and then swissquote will have to transfer back from gBP to CHF.

From your experience, does IB have an account starting with CH..?
Hi all

would like to revive this thread again - can someone confirm the charge for a payment in CHF from a PostFinance account to IB Citibank GB account (in CHF)? Is it a flat fee or depends on amount? Thanks.
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  #54  
Old 15.01.2018, 06:28
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Re: Interactive Brokers account

IB's payment instruction now lists a CH IBAN for that account. Using it, the payment goes over SIC instead of SWIFT and is free.
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  #55  
Old 15.01.2018, 15:21
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Re: Interactive Brokers account

So, for example, lets just say that a company pays you $100 in dividends... from that 35% is for Switzerland? and you end up with $65?

Plus you will have to deal with the hassle of paperwork with the tax offices and so on...

If you instead buy a Coca Cola stock, and this grows from 100 to 125, do you still need to pay to the tax office in Switzerland for that 25 rise of the stock?
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  #56  
Old 15.01.2018, 16:13
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Re: Interactive Brokers account

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So, for example, lets just say that a company pays you $100 in dividends... from that 35% is for Switzerland? and you end up with $65?

Plus you will have to deal with the hassle of paperwork with the tax offices and so on...

If you instead buy a Coca Cola stock, and this grows from 100 to 125, do you still need to pay to the tax office in Switzerland for that 25 rise of the stock?
Yes if a Swiss Broker. 15% if a US Broker & W8BEN filed.

No, however Coca Cola pays a dividend which is taxable.
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  #57  
Old 15.01.2018, 16:42
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Re: Interactive Brokers account

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Yes if a Swiss Broker. 15% if a US Broker & W8BEN filed.

No, however Coca Cola pays a dividend which is taxable.
In this case would be IB , so I would have to pay the difference between that 15% and 35% from Switzerland?
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  #58  
Old 15.01.2018, 17:45
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Re: Interactive Brokers account

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IB's payment instruction now lists a CH IBAN for that account. Using it, the payment goes over SIC instead of SWIFT and is free.
Weird...I still get the Citibank GB IBAN Nr. as mentioned here previously for a CHF payment.... Can someone else verify?
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  #59  
Old 15.01.2018, 17:54
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Re: Interactive Brokers account

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In this case would be IB , so I would have to pay the difference between that 15% and 35% from Switzerland?
Depends on what your marginal tax rate is.
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  #60  
Old 15.01.2018, 18:49
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Re: Interactive Brokers account

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Depends on what your marginal tax rate is.
I guess at the end of the line you end up earning more - or - getting more income, more or less, but getting something extra with the Dividends

At which part of the year we have to declare what we earn extra with the dividends? you need to pass the barrier of the 120k if Im with the B Permit?
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