A taxpayer that has incurred losses on transfer of securities is entitled to offset such losses on future gains of the same kind for a period of five years, even if the amount of securities sold during the year of loss does not attain the minimum taxation threshold. This decision was ruled by the Nantes Administrative Court of Appeal on June 8, 1995 in opposition to the French Tax Administration's doctrine which states that the offsetting of a loss on future gains of the same kind is only possible if the total amount of securities sold during the year of loss attains the minimum taxation threshold. However, it may be advisable to wait for a confirmation of this favorable decision by the French Supreme Administrative Court. Indeed, case law usually establishes a link between taxation and deductibility.
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