Selling stock - Swiss law

Hello,

I recently made a high profit on a stock in just a few weeks.

What should I do, regarding the Swiss law, is it risky to sell the stock before the 6 months?
Because in that case I would be considered as professional trader by the administration?

Thanks for your advice :slight_smile:

https://forum.mustachianpost.com/t/interactive-brokers-which-reports-needed-for-tax-declaration/4270/34

Could we maybe make a dedicated thread on the professional trader status ? If anyone asks that same question each time they sell a piece of security we are not out of the woods…

You have to ask yourself how does your profit compares to your usual revenues, did you make a 5 k profit but earn 100 k a year ? then you are not going to be tagged as such because of a single transaction. Did you make a 1 million profit trading options on the recent $GME trade then you might be a candidate for that price.

That being said, you are not required to disclose any single trade you did while filling in your tax return, only the dividends and the state of your portfolio at the end of the year are required. If there is a discrepancy between your wealth at the end of the previous year and your wealth at the end of the current year and that discrepancy cannot be explained with your declared income the tax authority will ask you to justify and that’s when you may be flagged as a pro trader in case this increase results from a massive trading gain.

Another interesting source on that topic : link , point 3 of that document describes the usual process to become pro trader, in line with what’s above.

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Thanks for your answer.
I’m sorry I should have done more research on the forum.
Your answer is pretty clear.

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No worries. To be honest after reading so many posts on that topic on the forum I started doing some research on the issue (you find a lot when looking for “gewerbsmässiger wertschriftenhändler” on google. I’ve been filling taxes in ZH for the past 15 years and the year we bought a flat we had a 500k turnover on our portfolio and some of those positions we had hold for less than 6 months. This did not triggered any red flag. I also do some options for fun, without much success I must say and that never triggered any audit of my taxes.

Reading the reports from the kantonal / federal courts on the matter you see that the amounts involved are massive, in the range of several 100 of thousands of profits in a year. To be honest I guess only a handful of people can be affected by this…

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