capital gains
May 27, 2010 | 20,00 EUR | answered by Oliver Burchardt
Hello and Greetings,
together with a partner, I purchased a agricultural and forestry business on 7.11.2002 for €450,000.00, each owning 50%, plus additional costs. We sold it again on 29.12.2008 for €750,000.00. During this time, we invested approximately €300,000.00 in construction measures. We did not operate any agriculture during this time and therefore did not have any income. Now I probably have to declare the capital gain in my tax return for 2009. At the time of the sale, I was 66 years old.
My questions:
1. Can the construction investment be fully deducted, resulting in a capital loss?
2. If a tax advisor prepares this tax return for me, what are the costs and could you be this tax advisor?
Thank you for your response.
Dear inquirer,
Thank you for your inquiry, which I would like to answer as part of an initial consultation taking into account your input.
Please note that the tax assessment is based on the description of your situation. Adding, changing, or omitting information can affect the tax assessment.
In general, investments can be claimed for tax purposes through scheduled depreciation. When selling the business, the value of the business assets is then deducted from the selling price.
However, questions arise as to whether the assessment periods in which the investments were made can still be changed, and if there is a possibility to still claim the investments for tax purposes (if this has not already been done).
I cannot answer these questions without a precise understanding of the circumstances.
The costs incurred when engaging a tax advisor are determined by the Tax Advisor Fee Regulation. They are calculated based on the so-called object value. I cannot determine this object value from your information, so I cannot provide you with meaningful information on the amount of costs involved.
In general, I am available to assist you in preparing your tax return. If you are interested in further consultation, you can reach me using the contact information provided in my profile.
Best regards,
Oliver Burchardt
Tax Advisor
