Ask a tax advisor on the topic of Income tax return

Speculation tax investment SO

March 30, 2022 | 50,00 EUR | answered by Dipl.-Kfm. Frank-Olaf Illiges

Dear Sir or Madam,

In 2020, I inherited developed and undeveloped plots of land from my mother that she had inherited over 20 years ago and sold them. The notarial contracts and transfers of ownership took place in 2020, I received the purchase price payments in 2020 and 2021, and the entries in the land register were made in 2021.

1. Do I have to declare a plot of land with 3 old houses in attachment SO? One house was inhabited by the parents until 2020, one house was rented out, and one house was vacant.
2. Do I tick the box for use for other purposes and for residential purposes?
3. Do I split the type of use according to the plot area or according to the living area?
4. Can I allocate all real estate agent and credit costs only to the sales of the 4 undeveloped plots of land, or do I have to allocate them proportionally to all 5 sales? Proportionally according to purchase price or area?
5. Can I declare all advertising costs for the plots of land from 2020 and 2021, or only for 2021?
6. What hourly rate and kilometer flat rate can be applied for personal expenses in advertising costs?

Thank you for your help.
Kind regards

Dipl.-Kfm. Frank-Olaf Illiges

Dear inquirer,

Thank you for your inquiry, which I will gladly answer taking into account your effort and the rules of this platform.

In attachment SO, only property sales need to be explained in lines 31 to 40 where the period between acquisition and sale does not exceed 10 years. Since you inherited the properties from your mother and acquired them free of charge, the acquisition of the properties by your mother's deceased is attributed to you. As more than 20 years have passed between the acquisition of the properties by your mother's deceased and your sale of the properties, you do not need to provide information about this property sale in attachment SO. The property sale is exempt from income tax according to § 23 para. 1 no. 1 sentence 1 Income Tax Act (EStG).

Sincerely,
Dipl.-Kfm. Frank-Olaf Illiges
Tax consultant
Ringstraße 98
33378 Rheda-Wiedenbrück

Phone: 05242/4055666
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e-mail: office@illiges-steuerberatung.de
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