[Dividend and "Wash Sale": The Two Major "Hard Nuts to Crack" in Overseas Investment Taxation]

When global investors handle overseas investment taxation, in addition to the basic delivery gains and losses, there are two special points that must be noted, which are the "hard nuts to crack" in transaction planning.

First, there are dividends and interest. Unlike the capital gains from buying and selling stocks, once dividends are distributed and credited, they are considered confirmed and realized income. This portion of income cannot be deferred by purchasing other assets at the end of the year; it is a tax item that needs to be addressed directly. This point is particularly important for investors who prefer a high dividend strategy.

Second, it is to avoid "Wash Sale." Some investors may sell their losing stocks at the end of the year to realize the losses for tax deductions against profits, but they do not want to miss out on subsequent gains, so they buy back very shortly after selling. This practice may be considered a "Wash Sale" for tax purposes in many European and American countries, and the loss will not be recognized. To realize the loss, a more prudent approach is to sell and wait for more than a month before buying back, or directly switch to another different stock.

Refined tax management requires not only understanding how to defer income, but also knowing what cannot be avoided and which operations are ineffective.

In your investment portfolio, do high dividend stocks make up a large proportion? Have you considered their tax implications?

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Not investment advice.

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