Transfer of forestry land into private ownership. Should the immediate growth be taxed?
July 18, 2017 | 50,00 EUR | answered by Wirtschaftsprüfer André Hintz
Hello,
as part of the anticipated inheritance, I would like to transfer agricultural and forestry properties to my children. In order to make use of the tax exemption that one receives once in a lifetime, as well as the tax exemptions for the children, I have had a market value appraisal prepared for the tax office. However, this appraisal does not include the growth of the forestry areas. The appraiser believes that the growth should not be included in the appraisal, as my children will have to pay taxes on future revenues from forestry anyway. Therefore, I would not have to pay taxes on the growth. Is this correct? Or does the growth also need to be evaluated?
Dear inquirer,
I would like to answer your question within the framework of an initial consultation and your fee commitment, in accordance with the rules of the online portal. My response is based on the situation you have described.
If your properties are used as part of agricultural or forestry assets, they must be taken into account in the gift tax assessment according to §§ 33 ff. BewG. The key factor here is the unified assessment notice, which defines whether the areas are considered agricultural land.
If this is the case, the valuation of the areas for the gift tax will then include the growth according to §§ 54 ff BewG.
Overall, it would be advisable to first calculate according to the Inheritance Tax Act in conjunction with the Valuation Act before commissioning another expert opinion. Based on this calculation, a tax-free transfer to your children may already be achieved by taking into account the tax exemptions.
I hope that my explanation has been helpful and remain
Yours sincerely,
André Hintz
Tax advisor
Auditor
