Self-used historical building
May 21, 2010 | 30,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
Good morning,
I am writing in 2009, in the 10th year, with approximately €40,000 annually (10%) deducting a property as owner-occupied residential property in the area of special expenses, because it is also being used for personal living. In my self-employment, I have classified 46% of the interest, approximately €10,000, as room costs for this activity.
Is the information correct that by classifying the interest and operating costs in my self-employment, I have created business assets that I must now tax after selling the house, even though I thought I had claimed personal expenses in the area of special expenses?
Is the only solution to transfer the business assets to a new building? If business assets have been created that are subject to taxation, should the tax office not have pointed out that depreciation should not be declared as owner-occupied residential property?
Thank you in advance,
Kind regards.
Dear client,
Thank you for your inquiry, which I would like to answer based on the information provided and the context of your situation in the form of an initial consultation as follows:
You have apparently claimed the tax benefit according to § 10f EStG in full due to the use of the property for personal residential purposes.
However, you have also used the property for professional purposes to the extent of 46%, resulting in the creation of "necessary operating assets" amounting to 46%. The sale of necessary operating assets usually results in a capital gain, which is subject to income tax.
From the description of your situation, it seems that the tax office has calculated a business capital gain. However, this contradicts the fact that § 10f EStG was granted for the entire property (100%), which is only possible with 100% personal use for residential purposes.
This contradiction needs to be clarified first. Therefore, you should lodge an appeal against the income tax assessment in a timely manner and then have this very complex situation examined by a tax advisor.
The tax office was not obligated to inform you about the situation you mentioned.
Whether the transfer you desire will be possible, for example through a reserve according to § 6b EStG, cannot be determined without detailed knowledge.
The situation is quite complicated and requires a review of your records from the past 10 years, as it seems that there have been some errors.
Best regards,
Ulrich Stiller
Tax advisor/Diplom-Betriebswirt
