Taxation of purchase installment in case of joint assessment.
Hello, regarding the transfer of a PRIVATE, commercially used rental property to my wife, JOINT ASSESSMENT, market value 180,000€ (income approach), consideration e.g. lifetime annuity payment (according to tax code §14BewG) results in a capital value of 179,640€ = 1,700€/month, to be paid from rental income. (Depreciation is newly created due to new valuation) The transfer (however it may be) should reduce compulsory shares, better liquidate them. Questions: Because 100% equivalence (performance to consideration) is achievable here, we find the transfer via SALES CONTRACT to be the best option. (Possibly eliminating compulsory shares) There are two options available for "payments" here. XX?-Rent (e.g. lifetime annuity) as recurring payments or PURCHASE PRICE INSTALLMENT as fixed consideration. Which one would you advise us (joint assessment) to choose? Which one is most tax-efficient for us? How should this be named in the sales contract in your opinion? How are the payments of 1,700€/month or 20,400€/year TAXED: for my wife; for me? Please provide a numerical example if possible. Also, specify the applicable laws §§§ + possible guidelines. Kind regards
