Ask a tax advisor on the topic of Income tax return

sale and purchase of company shares

March 14, 2011 | 30,00 EUR | answered by Dipl.BW/SB Ulrich Stiller

Dear Sir or Madam,

In October 2010, my husband sold 100% of his shares in a agricultural business. He is 58 years old and 40% of the proceeds are tax-free. I am a 50% owner of a dental laboratory (GmbH). There is an opportunity for my husband to acquire the remaining 50% stake in the laboratory.

Would this sale and purchase of new shares help reduce income tax?

Best regards,

Dipl.BW/SB Ulrich Stiller

Dear advice seeker,

Thank you for your inquiry, which I would like to answer based on your information and in the context of your dedication in a first consultation as follows:

According to § 6b paragraph 10 of the Income Tax Act, your husband could in principle transfer the taxable capital gain of up to 500,000 euros by purchasing shares in the dental laboratory by December 31, 2012. Through the transfer, your husband can reduce the capital gain in 2010 to zero, depending on the amount of the gain and the personal income tax rate. However, I must point out that you must carefully plan and discuss the procedure with a tax advisor to ensure that everything is done correctly from a tax perspective.

I can only provide you with general guidance in this forum, which can then be detailed based on the documents to lead to a final design.

I hope I was able to assist you.

Best regards,

Ulrich Stiller
Tax consultant/Graduate in Business Administration