Christmas stands at the door and it is rarely free. An effective way to pay for presents and Christmas food is to cast an extra eye on the declaration already. There are several smart ways to save several thousand dollars if you step into the work before December 31, especially if you have shares or funds.
There’s a lot to do where the breaking point is December 31. It’s about deductions and profits and losses that you have to set off against each other, says Ana Manda, family economist at Ikano bank to Vondatch.
Vondatch lists in its Article 7 ways to get more money in the wallet
1. Set off profits against losses
Some profits you made during the year – for example, income yields, sale of shares and rental of housing, you get offset against any losses. One way to do this is to sell off lost shares, offset them against the profits and then buy them back cheaply after the turn of the year. Any profit that exceeds set-off is taxed at 30%. In the event of a total loss, you instead receive a tax reduction of 30%.
2. Set off losses against profits
In the event of a loss of capital and losses from securities and funds, you will be allowed to deduct 70% of the loss. But if you can offset them against a profit from a stock or fund, you instead have to deduct 100% of the loss.
3. Transfer the money to an LPO account
If you want to transfer your savings to an investment savings account, you are wise to wait until after December 31st. By selling mutual funds and shares before the turn of the year and instead buying new ones in your investment savings account 2018, you avoid double taxation. If you have instead received money into your LPO account from a profit, you earn from picking out the money to avoid being taxed on extra capital on 31 December.
Make deductions for pension savings
Individual companies and employees of companies that do not pay occupational pensions have the right to deduct pension savings. The maximum deduction is 35% of your income before tax, up to SEK 455,000.
Utilize root and pane
You can make root deductions for 30 percent of the labor cost up to SEK 50,000 and grid deductions for half the labor cost up to SEK 25,000. If you are over 65, you will be allowed to double the box. The deductions apply to invoices that are paid before the turn of the year and prepaid work must be completed by 31 January 2018. The total deduction amount for root and square per year is SEK 50,000 and may be distributed to different jobs within the household.
Make an interest distribution
The interest rate on your mortgage will affect your final result for the year, as 30 percent may be deducted from income in the declaration. Anyone who has had a capital loss of up to SEK 100,000 receives a tax reduction of 30 percent. Higher deficits than tax may be reduced by 21 percent. But since two homeowners on the same loan have the right to distribute their expense rates among themselves – which may be deducted from income – you have the opportunity to get the higher tax reduction.
Remember to tax evasion
If you know that you will have large expenses for work-related travel and the like, it may be smart to tax evasion instead of having to “spend the money” in the form of too high provisional tax. In order to be able to tax the tax next year, your application must be with the Swedish Tax Agency before the turn of the year.