Sale of a rented residential building
June 8, 2011 | 25,00 EUR | answered by Matthias Wander
Hello,
2 years ago, I received a residential building with 3 rented apartments as a gift from my parents. If I now sell the house, how will this affect me tax-wise? Which values will be used as a basis?
Thank you very much
JH
Dear seeker of advice,
Thank you for your inquiry, which I would like to answer based on your information and in the context of your situation as part of an initial consultation.
Profits from the sale of rented properties are subject to income tax as private sales transactions. However, this only applies if less than 10 years have passed between the purchase and sale.
Since you received the property as a gift, the relevant point for calculating the 10-year period is the acquisition date of your parents. The gift does not count as a purchase.
If the period between your parents' original purchase and the current sale is more than 10 years, you can sell the property tax-free.
I hope this has provided you with an initial overview.
Kind regards,
Wander
Tax Advisor
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