Alright so my IBKR account is open, now I have to pick which fund to buy.
I thought Vanguard VT would be the easiest. This way I only own one fund. Where I’m confused is regarding taxes in CH.
If I understand correctly, profits aren’t taxed (fortune is), but dividends are? If so, does VT issue dividends or do they increase your position based on how much the dividends paid out? I’m not entirely sure that even makes sense, would appreciate some insights here.
I am also planning on selling all my mutual funds shares at my Canadian broker, and bringing the cash to IBKR to put in VT. What will be the basis for taxes in CH?
I read that you have to pay taxes on profits if it makes up at least 50% of your income for that year, otherwise you don’t. What’s the basis for that, is it the difference between the book value and the market value for the Canadian investments I’ll be selling, or is another benchmark used? My profits will probably not amount to 50% of my income for 2020, but the total portfolio value is multiple times that.
Thanks for shedding some light on this, I’m still figuring things out and I don’t speak German too well (which is the language my canton’s tax authority uses)