Donation of an apartment without usufructuary rights
April 19, 2011 | 30,00 EUR | answered by Michael Herrmann
My parents have gifted me an apartment in which they continue to live. My sister is not supposed to receive this apartment for family reasons, so the notary did not agree to grant my parents the usufruct right, otherwise the gift would only count with the death of my parents (10-year gift period). Do I now have to pay rent for my parents? My parents do not pay rent, they live there free of charge. The value of the apartment is approximately 180,000 euros. Which forms do I have to fill out with the tax office? Thank you.
Dear Inquirer,
First of all, thank you very much for your inquiry, which I would like to answer based on the information provided and in the context of your engagement for an initial consultation. The response is provided in accordance with the description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.
Obliged to file are, among others, natural persons who have a residence or habitual abode in the Federal Republic of Germany, regardless of their nationality. Tax liability arises, among other things, in the case of acquisitions by inheritance and lifetime gifts.
Since your parents continue to use the house free of charge, you do not generate income. The transaction is irrelevant for income tax purposes.
Usually, the tax office will send the parties an official declaration form. There is usually some time between the property gift, which the notary also reports to the tax office, and the sending of the declaration form. What deadlines need to be observed? Any acquisition subject to inheritance tax / gift tax must be reported by the acquirer to the competent tax office within three months of acquiring knowledge. In the case of gifts, the donor is also required to report. Reporting is not necessary if the acquisition is based on a will that has been opened by a notary or a court and the relationship between the acquirer and the deceased is evident from the will, and if a gift has been certified by a court or notary. The tax office will contact you if it deems a declaration still necessary.
I hope that these details have provided you with a sufficient overview of the situation in the context of your engagement and this initial consultation, and remain
Yours sincerely,
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax Advisor
