System change with side effects: BFH limits application of partial exemption for capital losses in conjunction with Section 56 InvStG

The Federal Fiscal Court (BFH) limits the application of partial exemption for capital losses under Section 56 of the Investment Tax Act (InvStG). Losses based solely on the transitional fiction as of January 1, 2018, are to be taken into account in full for tax purposes. This may result in refund claims for affected investors. In her article, Carolin Stehr explains the facts underlying the decisions, how the BFH justified them, and what needs to be taken into account in practice.