What are the best tax saving funds
Significantly lower returns for tax savings funds
In the months of November and December, over 50 percent of annual sales are made with tax savings funds. This year, however, there is great uncertainty about the planned tax reform. Rainer Zitelmann spoke to fund expert Stefan Loipfinger about the consequences and the possible need for action by investors. THE WORLD:
How can the investor estimate the impact of the tax plans for a fund he is considering? Cross-country finger: Many investors are overwhelmed by this. You should definitely have yourself calculated how the fund will pay off with the new tax parameters. This is particularly important due to the abolition of half the average tax rate for commercial funds. Aircraft funds, numerous leasing funds and those real estate funds that are "commercial" are affected. THE WORLD: To what extent are the return forecasts changing for these funds? Cross-country finger: Top earners who had subscribed to a share of DM 100,000 in an aircraft fund could, under the old tax law, achieve a total return of DM 25,000 to 30,000 in ten years. As a result of the planned tax reform, the income will shrink to 3,000 to 5,000 DM. DIE WELT: Are there differences between the types of funds?Cross-country finger: Yes, aircraft funds have so-called "operate leasing funds". Compared to earlier constructions, these show significantly better returns even with a changed tax scenario, but also with a significantly higher risk. For the other commercial funds, the effects are sometimes very different. In addition to the return in percent, the investor should always be given the average interest-bearing capital. This is the only way he can see what he really deserves. THE WORLD: Are the traditional closed-end real estate funds the relative winners of the tax reform as they are not affected by the elimination of half the average tax rate? Cross-country finger: Yes, in any case, this applies without restriction to investors who are within the tax exemptions applicable from 1999 or the so-called 50 percent rule. Investors who have very large loss allocations and who exceed these exemptions should have themselves calculated what the cap of the loss compensation means for them. THE WORLD: How can the investor obtain reliable information about the effects of the tax changes? Cross-country finger: In any case, the investor should obtain a written calculation from the seller that is based on the scenario of the current draft laws on tax reform. Second, he should go to his tax advisor and present this calculation to him. Tax advisors are in many cases overwhelmed with assessing the quality and profitability of a fund, but they are definitely the best advisors for calculating the tax effects on investors. Further reports on this topic can be found in today's supplement "Tax-saving capital investments".
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