Income tax on the sale of shares in a real estate partnership
November 4, 2014 | 40,00 EUR | answered by StB Steffen Becker
Shares in a real estate partnership are transferred from shareholder 1 to shareholder 2. Can speculative gains be generated here, and how should this be taken into account for income tax? (Real estate transfer tax should not apply)
Are there any special considerations if the shares are transferred after the notarized purchase agreement of the partnership for the purchase of the property, but before the payment of the purchase price and transfer of benefits and burdens?
Dear questioner,
Thank you for your inquiry. I will answer this as part of an initial consultation based on the information provided. Missing or incorrect information may affect the legal outcome.
When selling the share of a wealth-managing partnership, there is a private capital transaction for income tax purposes, in which the 10-year speculation period must be observed. The sale of the share is considered as the sale of the individual properties in the partnership's assets. Regarding real estate transfer tax, a transfer of shares in a company is only considered equivalent to a transfer of real estate if at least 95% of the shares are transferred.
For the calculation of the deadline, the respective dates of the purchase and sale agreements are decisive. It is irrelevant that a full 10 years have passed between the payment of the purchase price and the receipt of the sale price. It is also irrelevant when the change of ownership was registered in the land register for both the purchase and sale. Only the dates of the two purchase agreements count.
I hope this information was helpful to you.
Kind regards,
Steffen Becker
Tax advisor
