Thanks in part to Stock Gumshoe and in part to dumb luck, I find myself facing a new situation this year: Profitability!
And being a a small-time beginner I have no idea what to do about it!
I list my assumptions below to see if anyone can tell me if I am more or less correct. I’m fully aware that I will need the help of a professional, but it would be great if I can at least ask them the right questions!
Assumption 1: The capital gain happens the moment Interactive Brokers says ”filled” and it makes no difference whether I reinvest profits, keep them in the IB account or transfer them to a bank account.
Assumption 2: As a Brit living in Spain, what determines where I pay tax is a) where I pay normal income tax (Spain) , or maybe b) where I told IB I was resident. (Spain)
Assumption 3: That it makes no difference that most of the funds that went into IB in the first place came from my UK bank account.
Assumption 4: That brokers do not run to Governments with details of my transactions but will supply them if asked, so I should get proactive and sort it all out to avoid trouble in the future.
Assumption 5: That I can subtract capital losses from capital gains to get the total on which I have to pay tax.
Many thanks for reading. Apologies if it’s all laid out somewhere. I did try searching, but maybe it’s assumed that everyone here is a grown-up with an accountant, unlike myself!
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