Deadlines for tax-exempt sale in case of owner-occupancy
September 19, 2015 | 30,00 EUR | answered by Dipl.-Kfm. Frank-Olaf Illiges
Hello,
I bought a property in 2011, which was rented out until 06/2013 and then remained vacant. Since 1.2.2014, I have been using the property myself (as my main residence according to the registration certificate). I would like to sell the property tax-free on 2.1.2016. According to §23 EStG, this situation would allow for a tax-free sale, is that correct?
What is relevant for tax purposes regarding the sale date? The date of the purchase contract or the transfer of possession/use/liabilities that takes place 1-2 months later?
Dear inquirer,
Thank you for your inquiry, which I am happy to answer taking into account 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 information can alter the tax result. Please also note that this cannot replace individual comprehensive advice.
The capital gain from the sale of a property is not subject to income tax if the property was used for own residential purposes in the year of sale and in the two previous years (§ 23 para. 1 no. 1 sentence 3 Income Tax Act (EStG)). This means that the property must be used for own residential purposes within a contiguous period in the last three calendar years, which do not have to be full calendar years (BMF letter of 05.10.2000, RZ 25). Since you will be using the property for own residential purposes from 01.02.2014 to 02.01.2016, the gain from the sale of this property is not subject to income tax.
For the calculation of the holding period, the date of the purchase contract is relevant for both the acquisition and the sale of the property (H 23 "holding period" Income Tax Guidelines (EStH)).
Best regards,
Dipl.-Kfm. Frank-Olaf Illiges
Tax consultant
Am Wieksbach 55
33378 Rheda-Wiedenbrück
Phone: 05242/4055666
Fax: 05242/4055677
e-mail: office@illiges-steuerberatung.de
Internet: www.illiges-steuerberatung.de
