Continuous load.
October 16, 2011 | 20,00 EUR | answered by Dr. Yanqiong Bolik
As part of a transfer agreement, a lifelong right of residence for parents was agreed upon. The right is registered in the land register and agreed with an annual value of 2,700 euros. No payments are made.
Can this value be claimed as a permanent burden for tax purposes if it is declared as income for the parents?
Dear inquirer,
Thank you for your inquiry, which I am happy to answer taking into consideration your commitment and the rules of this platform.
Please note that my explanation is based on the facts presented, and that adding, omitting, changing information, or the ambiguity of the information can change the tax result.
If the transfer took place before 31.12.2007, according to Rz. 45 of the BMF letter dated 16.9.2004, BStBl I 2004, 922, you can only deduct the expenses directly related to the provision of living space as a permanent burden. This includes expenses for services such as electricity, heating, water, and maintenance costs to which you are obligated. Unfortunately, the value of the right of residence is not deductible. If the transfer occurred after 01.01.2008, only support payments related to the transfer of a share in a partnership, a business or part of a business, or at least a 50% share in a GmbH are deductible as special expenses, if the transferor was acting as a managing director and the transferee takes over this role.
I hope I was able to assist you.
If there is still any uncertainty, please feel free to use the follow-up function.
Best regards,
Dr. Yanqiong Bolik
Tax advisor
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 9332 2657
Email: info@zdbz.de
www.steuerberatung.zdbz.de
