inheritance tax
July 28, 2011 | 30,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
The situation is as follows...
In 2004, my sister and I each inherited 50% of our mother's house (who was a widow). A lifelong right of residence was registered. My sister herself lived in the house and cared for our mother, who passed away in 2004 (the year of the inheritance). My sister continued to live in the house. In 2011, she also passed away and I became the sole heir of the other 50%.
Now my question...
It is understandable that inheritance tax will be due for my sister's share (no decision has been made yet). Will I also have to pay capital gains tax because I sold the house (both my own half and the inherited half) in June 2011? The house had been in the possession of our parents since 1958.
Thank you in advance.
Dear Madam/Sir,
Thank you for your inquiry, which I would like to answer based on the information provided and in the context of your situation as part of an initial consultation:
In answering your question, I assume that the house is part of your private assets and that the transfer in 2004 was completely free of charge.
If the house is sold within 10 years of acquisition, it constitutes a private sale within the meaning of § 23 EStG, which is generally subject to taxation as a so-called speculative gain, unless the seller has not (partially) used the house for their own residential purposes.
Both the free transfer of the house share to you in 2004 and the inheritance of the remaining part due to the death of your sister through inheritance do not constitute acquisitions within the meaning of § 23 EStG. Therefore, considering that your parents acquired the house in 1958, the 10-year period does not play a role in the sale you made.
Result: The sale in June 2011 was and is tax-free, as it does not qualify as a speculative transaction.
I hope this information is helpful to you.
Kind regards,
Ulrich Stiller
Tax Consultant/Graduate in Business Administration
