Ask a tax advisor on the topic of Capital assets

Loss from the sale of shares in Global View Participation GmbH

April 14, 2011 | 30,00 EUR | answered by Michael Herrmann

Can I claim losses from selling shares in Global View Beteiligungs GmbH (closed property fund)? The fund was held from 2006-2010.

Michael Herrmann

Dear inquirer,

First of all, thank you very much for your inquiry, which I would like to answer based on the information you provided and in the context of your involvement in an initial consultation. The response is based on the description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.

In responding, I assume that the shares mentioned refer to the investment fund "Global View" and the Great Wheel Beteiligungs GmbH & Co. KG. Closed-end real estate funds are often structured as KG partnerships, which is crucial for the response. Furthermore, I assume that the investment was held in your personal assets and that the fund generated rental income rather than business income.

The loss from the sale would be tax-deductible if it qualified as a private sale according to § 23 of the Income Tax Act (EStG). Since the holding period (speculation period) for assets in private assets that are not real estate is only one year, there is no apparent private sale in this case. Therefore, the loss affects the non-taxable private asset level and is not tax-deductible.

I regret that I cannot provide you with a more favorable outcome, but I hope that these details have given you a sufficient overview of the situation in the context of your involvement and this initial consultation.

Yours sincerely,

Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax Advisor