Life events also affect your taxes

Life-changing events such as getting married, having a baby, or buying a house are important milestones that also have significant tax implications. Whenever a major life event occurs, you need to consider its tax impact.

Major changes in your situation can directly affect your tax bill. Let our specialists advise you! Let our specialists advise you!

Marriage can significantly impact your tax bill. Once married, spouses are taxed jointly.

‍Their income and assets are combined and subject to a higher tax bracket. However, the lower married rate applies.

On your tax return, you can claim both the dual-earner deduction and the married deduction. Additionally, some cantons grant a higher wealth allowance. Whether marriage improves your tax situation depends largely on your income level and must be assessed individually.

Parents can receive tax relief through the parental rate and the child deduction. The latter can be claimed as long as the child is underage or in primary or secondary education. Childcare costs, such as daycare and after-school care, are also deductible up to the age of 14, within certain limits. For unmarried parents, who can claim the deduction depends on their specific living situation; factors such as custody or maintenance payments are decisive.

Buying a property comes with tax obligations. For your tax return, you must declare the imputed rental value, maintenance costs, and taxable value of the property. Depending on the location, a tax allocation may be required.

Important: maintenance costs are tax-deductible, but value-enhancing investments are not. Careful planning with professional advice ensures optimal deductions.

Divorce or separation also has tax implications. From that point on, you are taxed separately for the entire tax period. Key tax questions include: Who gets the lower married deduction? Who pays maintenance? How are assets divided? For families with children, an additional question arises: What happens with child deductions or childcare costs? All of these details must be declared correctly on the tax return and must not contradict each other.

After receiving an inheritance, questions arise about whether inheritance tax is due, how much is due, and where it must be paid.

Clearly, an inheritance or advance inheritance must be fully declared in the tax return. Whether inheritance tax is levied depends on the canton. The amount of tax is determined by the degree of kinship. The situation becomes more complex when the inheritance includes real estate. In that case, the property must be declared with its imputed rental and taxable values. If the property is located in another canton or abroad, a tax allocation must be made. Imputed rental value and taxable value both vary from canton to canton.

Did you start a company and wonder about the tax consequences? Do you now have to file two tax returns? The answer depends on whether you formed a partnership or a corporation.

If you formed a partnership (sole proprietorship or general partnership), the relevant details must be included in your personal tax return. In particular, you must complete a supplementary form with detailed information on the sole proprietorship, which complicates matters. Ultimately, your tax return must declare your total private and business income, as well as your private and business assets.

If you set up a corporation, such as an PLC or LLC, you must clearly separate your personal and business finances. The corporation must keep accounts and file its own tax return. The following questions are relevant in your personal tax return: How many shares or ownership interests do you hold? Do you have a shareholder loan with the company? Is there a debt or credit balance? Are salary or dividends paid out? At what rate are dividends taxed? The deductibility of business expenses for shareholders is even disputed and must be assessed on a case-by-case basis.

When you enter retirement, your income structure changes. Your salary stops, but you receive pensions from AHV, occupational pension plans, and possibly Pillar 3a. These benefits are partially or fully taxable. Additionally, deductions (e.g., for work-related expenses) may be reduced. Proper preparation can help you optimize your tax burden in retirement.

Moving your residence across the border can have major tax implications. It may create a partial-year tax liability, and a tax allocation is often required. If you are moving to Switzerland from another country, you must correctly declare your assets and income, which often includes international specifics (e.g., real estate or pension funds).