Gift tax - Inheritance share
January 23, 2019 | 40,00 EUR | answered by Steuerberater Bernd Thomas
My partner and I want to build a house.
She will receive 140,000€ as an advance inheritance from her parents.
With this, we want to buy the property together and both be registered in the land register with a 50% share. We will both take over the financing of the building in equal parts.
Will there be a gift tax or similar in this case? Is it possible to avoid this, if so how?
In the event of the "death" of my partner - her inheritance will go to her parents + siblings, thus also 50% of the house. Is this correct? Is it possible to avoid this by having the relevant persons sign a waiver of inheritance?
Best regards
D.C
Dear inquirer,
I am happy to answer your inquiry based on the information provided in a preliminary consultation on frag-einen.com. The response is based on the facts presented by you. Missing or incorrect information may affect the legal outcome.
If your girlfriend contributes €140,000, but you benefit from the acquisition of half of the property, this is a transaction subject to gift tax. If you are not related, the tax-free allowance is only €20,000 within a 10-year period.
To avoid gift tax, you can instead agree to a loan instead of a gift. However, this should be granted under customary conditions (interest rates, security, and form), as otherwise the tax office may not recognize the loan. Another option would be to acquire shares in proportions other than 50/50 or to marry before the acquisition, as significantly higher tax-free allowances apply in that case.
Best regards,
Bernd Thomas
Tax advisor
Dipl.-Kaufmann (FH) Bernd Thomas, Tax Advisor, Neustadtswall 85, 28199 Bremen, bernd.thomas@yahoo.de, VAT ID No. DE316948369, member of the Hanseatic Tax Advisor Chamber Bremen, registration number 111705, professional liability insurance with R+V Allgemeine Versicherung AG, Mittlerer Pfad 24, 70499 Stuttgart, insurance sum: €250,000 per individual claim; annual limit: €1,000,000 (for all claims in one insurance year), the regulations of the StBerG apply https://www.gesetze-im-internet.de/stberg/.
