I have a number of questions related to taxation from trading stocks and derivatives.This is the first year that I will be probably be labeled as a “professional” trader according to these rules: https://www.moneyland.ch/en/stock-market-profits-tax-free .
I am hoping someone with more experience can give me some pointers with respect to how the taxable income is computed. Recommendations for a tax advisor (Zurich) are also welcomed - someone that can explain the rules rather than submit a tax declaration on my behalf. Also, if there is sufficient interest in the topic, I will try to share my experience and what I learn in the process.
In particular, I have the following questions:
When determining profits: a) is the market value of all securities or derivatives considered, or b) are only the realised gains taken into account. For example, let’s say I have an open option position that shows profit on 31.12.2020. Will the profit be taxed in 2020 or in 2021 when I close the position and realise the gains.
Do I have to realize losses (e.g., similar to the US) to reduce my tax bill? In general, once one gets labeled as a “professional”, are there any trading patterns that can reduce my taxable income? For example, establishing a stock or option position that could move the profits to the next year or postpone the tax until the gains are realized?
Can I avoid taxes on capital gains for stocks held for more than 6 months? Let’s say I have an account where several stock positions are maintained for more than 6 months but there is some additional trading that gives me the “professional” status (i.e., significant stock and option trading unrelated to the said stock positions). Will I be taxed also on the gains for the stocks that I held according to the rules of a “private investor”? What about the same scenario but now I have two different accounts, one for trading and another one for long term investing?
Any comments/suggestions are greatly appreciated!