source: screenshot start tax page Pixabay & art by me

📉📈💵💸💳🪙💷💶💎

The value of a second home or a house that you rent out to other than family memebers also falls under the assets on which capital gains tax must be paid, the payment is in box 3 for all the dutch readers here. Less tax, more net wages: this will change in 2021 You actually pay 0.59% tax on the amount between € 50,000 and € 100,000, and 1.4% tax on the amount between € 100,000 and
€ 1,000,000. You pay 1.76% tax on everything above the million. All extras and if you ask me its unfair. Yes we are a healthy country money wise , but the hardworking few that earned their money fair and square, make up for the people in debt or non savers.

It was funny to see that I am not the only one, and that there are ways to avoid the new payment taxes. It might be smart to reduce when you have the money in your savings accounts with the banks in holland the balance to € 49.900 or € 99.900 before the 1st of January. You still ave 5 days.

I read some options to do that:

• Health insurance Lets look at your insurances. You can expan, because when you get older you need different care and extended care maybe. From all insurances the most expensive one is almost always the health one. Certainly when you have a family. Health insurance policies usually offer the option of paying for the policy for a whole year in one go. In this way you bring your savings balance down by € 1000 to € 2000, you also often get a little discount. I know we get 12 % discount if we pay the insurance for us 6 at once in the first two weeks of January. All in all, you can save a few bucks this way.

• Pay off a mortgage In Holland 60 % of the population own a house, a house is yours, so paying that off might be a great option aswell, if I had the amount and had to down size the amount this would be the option I would take. Monthly it also is also great, because your mortgage is lower.
  You can often repay an extra percentage on the mortgage every calendar year. Sometimes you can arrange this in the online environment of your lender yourself, then it will certainly still work in 2020. Please note: not every lender will process the extra repayment this year, so sometimes it already counts before 2021. If you receive the money transfer directly, you do lower your savings balance. With the lockdown here the banks have the opportunity to go and consult online and arrange all from you couch at home. If you ask me a good one to investigate.

• Refinancing a mortgage Same thing is the house difference is you are re financing. If you switch the mortgage to the current low interest rate, you often have to pay a substantial interest payment (penalty interest). It may be beneficial to do this this year, because this penalty interest can be deducted up to a maximum of 46%. You also immediately reduce your savings balance. The mortgage rate for 10 years is 1,8 and for 20 years that is 0,9% so really low. By doing this, you reduce your savings balance on January 1st and you can still sue the higher deduction (for homeowners with higher incomes). Again you need to ask the bank all have different procedures.

• Paying up your pension The people who have a pension deficit can supplement this tax-friendly by using the annual margin. “This is especially interesting for people with an income that falls into the highest tax bracket,” The most common way of doing this is annuity accrual. You then transfer money to an account that remains blocked until the retirement date. It is important that you really do not need the money in the meantime, because if you do appeal, you pay a fine. Its like the crypto you have it is best to invest in crypto with money not needed soon , and soon being 10 years or more, leave it be and the future will be bright. You can opt for both pension savings and pension investments. With the latter option, the return is often higher, but you also run more risk. A lot a pension investment funds have been going bankrupt these last months.

• Big purchases A bit of an open door, but if you were already planning to make a major purchase, such as a new car, electric bicycle or a art piece like an expensive painting, and by expensive I mean expensive, you better hurry up. It makes no sense to buy things purely to avoid savings tax, but it is smart to advance purchases that you would otherwise make in January. As a lady who adores fashion a piece you always wanted by Louis Vuitton like a bag or watch from Cartier, is also a great move and will be a great surprise for your lady , friend or wife!

• Donate Are you already planning to make your children or other loved ones happy with a nice amount? Then do that before the end of the year. Not only do you still use the tax exemption for gifts (€ 5515 per calendar year for a child, € 2208 for others), you also reduce your savings balance. I know some parents do that at christmas because its both a present and helping them not to path extra tax. You will probably no longer be able to register due to the days left in 2020 a paper donation with the notary, but you can simply transfer the amount with the term "donation" there. Maybe he can do the date in 2020 if you aske nicely and go there in the first few days of 2021. I know these days all organisations to do with develloping and researching covid and the cure for covid get a lot of donations, to make the cure available to all of us asap.

• Investing green There are extra exemptions for green investing. However, it is wise to be properly informed about this. But have you already put money into such a green fund? Then it may be smart to supplement it up to the exemption. In 2021, this will be € 60,429, or € 120,858 for tax partners. You also receive an additional 0.7% of this amount in additional tax credit. There are a lot of green funds in the netherlands for wind energy and electric appliances. You might want to check it out.

• Cash Cash some and spend it hahahah, in the casino or pay a holiday cash or book it online with the travel market nowadays with Covid there is loads of offers that make great deals and a holiday when its not made gets a voucher to travel at a later date, and because you paid already the vouchers dont count. Whether it is sensible with a view to burglaries to withdraw a large amount of cash before January 1st is maybe not the best route but again these options are options I am not a financial advisor but I do unsderstand peiople who do this because again it is unfair to pay again.

• Invest Or invest, when you invest and make a lot that will make the extra payment of the new tax ok and peanuts with the value you will gain. For instance in the netherlands tech companies, wheel ,oil, gold and silver, but also Amazon for instance. Amazon's market value hit the $ 1 trillion mark in 2018. According to Bloomberg, Amazon could achieve annual gross sales of $ 1 trillion from 2025 onwards. With rising profits, Amazon is an undisputed market leader. Investors and people participating in the Amazon model can continuously earn from Amazon's development prospects.

Last but not least I have a tip also tax related and crypto , that you have top screenshot your Waller on the 31 st and on the 1st for your taxes for this year and as a start balance for the new year.

See older blogs by me :

https://steemit.com/bitcoin/@brittandjosie/4-o-clocky-concealing-bitcoins-is-useless

I was curious if my library of life crypto hive coins etc. were subjective to dutchtaxes. I would hate to earn all this $$$ and then find my self behind bars for failing to pay my yearly tax. I was worried that my tax accountant would know what crypto currency is let alone how to legally report it on my taxes. But these days crypto is getting more normal, well at least for some accountants or tax advisers. There is the option of ignoring it and not reporting. The chances I will get caught are pretty slim, but if I do get caught.... Most likely I will need to pay the taxes plus a huge euro penalty, if I don't have the funds I might get a new orange outfit, and even thoughtful orange is the new black, I hope I am too pretty to go to jail!

We are still in a bit of the grey area of the taxlaw on foreign and crypto currency but when we talk about substantial sums they will most likely be subject to taxes, I feel like the discussion is long over due. I'm sure numerous community members have not prepared for this eventuality and now is the time to consider what you are going to do.

I found thatthe community always has solid advice so please endulge me and inform. Put aside your views on taxes and offer some sound legal advice if you have any, for free preferably, thank you in advance. And let me know if you screenshotjes your wallet already ?