Pgrf 23 EstG - private sales transactions - installment payment - accrual principle
April 30, 2018 | 50,00 EUR | answered by Steuerberater Bernd Thomas
Does the tax on private sales transactions (rented residential property after 7 years) lapse if installment payments are agreed in such a way that the installment with which a profit is first made is only due after the holding period has expired?
Since the principle of accrual applies to the capital gains, this should be the case.
If not: On what grounds does the tax office refuse this? Is there any case law on this?
Dear questioner,
I am happy to answer your inquiry based on the information you provided as part of an initial consultation on frag-einen. The response is based on the facts you have provided. Missing or incorrect information can affect the legal outcome.
The deadline for the private sale transaction is calculated based on the obligatory transaction (contract conclusion), not on the payment date. Therefore, even with installment payments, the capital gains are taxable.
The timing of taxation, on the other hand, is based on the principle of cash inflow.
However, it should be noted that with such an installment agreement, unusual arrangements may not be recognized by the tax office as abusive arrangements. Similarly, there may be problems if contracts are entered into with relatives that do not withstand the arm's length principle. In this case, you may need to seek personal advice from a local colleague.
Best regards,
Bernd Thomas
Tax advisor
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