Purchase and sale of shares
When buying and selling shares, the right timing is essential. It is not enough to know which shares to buy, it is more essential to know when to buy and sell them. Buying and selling stocks at the right time is what we all strive for. Of course, it’s impossible to always buy at the bottom and sell at the top, but the closer you can get, the more money you will make.
The next thing to look at is the market direction.
Are we in an upward market (bull market) or a downward market (bear market)? Note that there is a third possibility, namely that the stock market is in a consolidation phase, which gives a sideways movement in the graphs.
75% of the risk associated with buying and selling shares, is in the market trend. It is therefore a really bad idea to buy a stock in a declining market.
When you buy through your bank or broker in Denmark, it handles the rest automatically and you do not have to do anything yourself. Banks and fund traders in Denmark are obliged to report the information to the Tax Agency.
You must remember to disclose the purchase to the Danish Tax Agency if it is securities purchased abroad and placed in a foreign depository.
When selling shares and other securities, you must pay tax on the gain. Gains from the sale of common stock are taxed as share income.
If you have suffered a loss by selling shares, you can deduct the loss if the Tax Authority has been informed of the purchase.
The tax value of negative share income is calculated (in Denmark) at 27 percent of the first DKK 55,300 and 42% of the remainder for 2020. For spouses, the total limit is DKK 110,600.