Disposal of real estate and potential taxes
October 16, 2012 | 50,00 EUR | answered by Wirtschaftsprüfer André Hintz
Hello,
I transferred half of my commercial and residential property, which I built in 1996, to my husband in 2008. Since 2003, this property has been rented out, currently to my children. We now want to sell this property to my daughter and her partner.
In return, my husband transferred half of his property, which also includes residential and office space, to me. We have been living in this property since we got married in 2004. He built it in 1993 with his ex-wife, and took over her half through marital property division in their divorce in 2003. We also want to sell this property now.
We plan to build together on a piece of land that my husband bought 10 years ago. For this purpose, he is transferring half of the land to me at no cost.
In the past 10 years, my husband has sold agricultural land and a property without profit, as well as 2 properties at a loss. All of these properties were in his possession for more than 10 years at the time of sale.
Do we need to consider any taxes in this situation?
Dear inquirer,
I would like to answer your question within the framework of an initial consultation and based on your fee commitment, in accordance with the rules of the online portal. My response is based on the situation you have presented.
In general, objects that you have held for longer than 10 years can be sold tax-free. If objects are transferred free of charge, the acquirer is considered the sole successor to the acquisition date of the predecessor.
For objects used exclusively for own residential purposes, the sale is also tax-free within the 10-year period.
Therefore, the sale of the property to your daughter and your self-used property should remain tax-free for you under the conditions mentioned.
It should be noted that both spouses should be treated separately.
However, it should be examined whether your husband is engaged in commercial real estate trading. This is usually the case if more than three objects are sold within a 5-year period. If necessary, you should consider delaying new sales so as not to fall within the 5-year period.
I hope my explanations have been helpful to you and remain
Yours sincerely
André Hintz
Tax consultant
Steuerberatung@andrehintz.de
