Dissolution of a GbR
October 27, 2011 | 30,00 EUR | answered by Dr. Yanqiong Bolik
Dear Sir or Madam,
A 2-person GbR is to be dissolved. The capital account of one partner is positive and that of the other is negative. The negative capital account cannot be balanced as it is financially not possible. According to the tax advisor, the negative account will be taxed as profit in the income tax of this partner.
What happens to the positive account? Can this be declared as a loss in the income tax of the corresponding partner?
Thank you.
Dear inquirer,
Thank you for your inquiry, which I will gladly answer taking into account your effort 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.
I assume in your case it concerns a commercially active GbR. The capital account of a GbR partner is calculated as follows: Sum of contributions made + capital changes of each fiscal year. Capital change = share of profits - share of losses + deposits - withdrawals. Capital changes are generally taken into account for tax purposes in the respective assessment period.
Whether you can declare a positive capital account balance as a loss in your income tax return depends on what you will receive back from the GbR after dissolution and liquidation:
- If the refund is less than your capital account balance, you will incur a loss equal to the difference between the refund and your capital account balance, which you should declare in your tax return.
- If the refund exceeds your capital account balance, then you should declare the difference as a profit.
I hope this explanation is helpful to you. If you need further clarification, 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
