The President of the Government announced this week that the Council of Ministers will approve in January the draft General Budgets of the State for 2019 and send it to Congress. The PSOE and Unidos Podemos signed a budget agreement in October specifying changes in Personal Income Tax (IRPF). If the project finally gets support in the lower house, is expected to increase by two points "the tax rates on the general basis for taxpayers who have incomes above 130,000 euros and four points for the part exceeding 300,000 euros." On the other hand, it is established that "the state rate on capital income is increased by four percentage points for incomes above 140,000 euros." The maximum tax rates could thus be between 49% and 52%, according to the autonomous communities (Andalusia, Asturias, Cantabria, Catalonia, La Rioja and Comunidad Valenciana would be located in the upper part). For the gains in the sale of shares, real estate or investment funds, the tax rate could go up to 27%, from the current 23%.
There are just over 20 days to calculate, with the aim of lowering the tax bill of income tax 2018, if it interests or not to sell shares, amortize loans, subscribe pension plans … If every year it is important to do this tax forecast exercise, this it is even more so. Especially on the part of taxpayers with higher incomes, who would be completely affected by the possible increase in income tax.
There are three aspects, in terms of investments, in which these last-minute calculations must be focused.
1. Investment funds, shares …
The results obtained (the term is no longer relevant and to calculate them, the expenses paid must be taken into account) in the purchase and sale of any of these assets are considered capital gains or losses. They are included in the tax base of savings and are taxed, according to their amount, at 19% (up to 6,000 euros), 21% (up to 50,000 euros) or 23% (over 50,000 euros). Do not forget that the transfer of money between investment funds does not pay taxes.
You can compensate the gains with the losses. Although in principle the positive and negative returns of movable capital (dividends, interest …) are compensated each other and, on the other hand, they do the patrimonial gains and losses, the reality is that now these "cajones" are not closed: if get a negative balance in any of them can be compensated with the positive of the other, with a limit of 25%. Therefore, it can be fiscally profitable to advance losses to 2018 to compensate for the gains already achieved over the last few months. On the other hand, it can also count on selling some shares or funds with profits so that they do not pay taxes if losses have been previously obtained, or if there are handicaps pending compensation of the previous four years, or even if it is thought that if they are perceived these gains in 2019 may be paid more for them (up to 27% those that exceed 140,000 euros).
With respect to the shares, funds and real estate acquired before December 31, 1994, the gains obtained in the sale of these assets are subject to the so-called abatement coefficients of 11.11%, 25% and 14.28. %, respectively, on the profits generated by them until January 20, 2006. There is a limit: the Treasury only allows these rebates to be applied on 400,000 euros. Hence, facing the end of the year, if you have assets of this age, sell those that generate more capital gains.
If the taxpayer is less than 65 years old and sells a non-regular home before the end of 2018, all of the above will be applied to property gains and losses (less those who acquired the property between May 12 and December 31, 2012). that only pay half). Again, it will be necessary to take into account when deciding whether to close the operation this year or next, the possibility that in 2019 the tax burden on capital gains will increase. If a habitual residence is sold and with the obtained amount another one is acquired within a period of two years, there is no need to pay taxes.
If the taxpayer is over 65 and sells his / her home in 2018, he / she will not pay taxes on the profits generated by his / her percentage on the property of the house (if all the owners of the house are over 65 years of age, none of them will be taxed). the capital gains). Moreover, if the over 65 sold before the end of this fiscal year other assets (other housing, shares …) will not pay taxes on the profits made on an amount of 240,000 euros, as long as in six months constitutes a life annuity .
The issue is that the over 65 can use this semicrédito fiscal whenever he wants. Thus, it may be unprofitable to apply it in 2018 if the gains or capital gains obtained in the sale of any of its assets are reduced. This possibility can be reserved for later. Regarding housing, it is also worth remembering that those who hold a mortgage signed before December 31, 2012 can continue to reduce their taxes by up to 15% of the amounts invested, with a limit of 9,040 euros per person. You can compensate repay the loan before the end of the year until you reach that limit.
3. Pension plans (and other social security products)
The contributions -in general terms up to 8,000 euros- that are made to these products directly reduce the income of the investor and with it currently up to 48% of taxes on these amounts. There is also the possibility of reducing the tax bill if, under certain conditions, contributions are made (maximum of 2,500 euros) in favor of the spouse.
If the time of retirement has arrived and a pension plan is recovered in 2018, that amount will be considered as a total work income (unless you have the right to a reduction of 40% for having made contributions to it before 2007 and will be charged in a single payment) so it is convenient to calculate the impact on income tax this increase in income (and also what it would have in 2019, with or without tax increase). In this regard, as stated by the REAF, "the most important thing is that taxpayers who retired in 2010 or before, and those who did in 2016, know that December 31 this year is the last day they have to redeem their plan in the form of capital with the right to reduce the amount by 40%).