Incurred capital gains tax upon the sale of a property
March 24, 2013 | 40,00 EUR | answered by Oliver Burchardt
As a partner of a GbR consisting of 2 persons, in 2006 I acquired the 50% share of a rented property from the second partner, so that since then the property is 100% mine. The property had a value of 500,000 euros in 2006, so the share was 250,000 euros. I now intend to sell the property for 800,000 euros within the so-called "speculation period". It is not a commercial trade in real estate. How will the expected profit be taxed? Do I have to pay taxes on the full 300,000 euro difference between the value at that time and the selling price, or only on the half share of 150,000 euros since I only "acquired" half back then? And will the prepayment penalty for the loan redemption also be deducted as selling expenses, either half or in full?
Dear inquirer,
Thank you for your request, which I am happy to answer as part of an initial consultation.
In your case, the profit from the sale is determined in two ways, as there are two different acquisition transactions involved.
Through the GbR, you acquired 50% of the property, so that this part already belongs to you as 50% of the property under the piercing through provision according to § 23 para. 1 sentence 4 EStG.
By acquiring the other GbR share, you separately acquire ownership of the remaining 50% of the property.
In transactions, the acquisition and the sale are considered separately, so in your case only the difference between the purchase price from 2006 and the selling price is considered as profit.
Unfortunately, the prepayment penalty cannot be considered as a reduction under § 23 EStG, because it is not part of the acquisition costs of the property.
Best regards,
Oliver Burchardt
Tax advisor
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