Property transfer tax for a house on land owned by someone else.
September 19, 2011 | 20,00 EUR | answered by Dr. Yanqiong Bolik
In a lake holiday area in Rhineland-Palatinate, a holiday cottage (approx. 30m2) was purchased on a leased plot of land.
Purchase price 120,000; value of the cottage is listed as 30,000, then the purchase price includes courtyard structures, paving, plants, 2 larger metal tool sheds, garden furniture. Furniture complete in the cottage including kitchen, dining room, living room, bedroom. Expensive shore reinforcement made of natural stones. A complete jetty system and a motorboat.
We expected taxation based on 30,000. Tax officials came before the property, verbally confirmed the value of the cottage as being of little value, we addressed him about poor building structure / rotten wood, completely replaceable window front.
According to the tax assessment, however, only 10,000 out of 120,000 was deducted as tax-free, on the grounds that only what is not firmly connected to the property can be deducted as tax-reducing. However, our acquaintances nearby had the cottage taxed with only about 40,000 out of 100,000.
We are now looking for a good reason for our objection.
Dear inquirer,
Thank you for your inquiry, which I am happy to answer taking into account your input and the rules of this platform.
Please note that my explanation is based on the presented facts, and that adding, omitting, changing details, or the ambiguity of information can change the tax result.
In your case, the real estate transfer tax is calculated based on the consideration for the acquired property.
The following components of this property are subject to real estate transfer tax:
- Land
- Buildings
- Courtyard structures (garden houses, walls, fences, courtyard, path, and square pavements)
- Produce (plants) as long as they are connected to the ground
Not considered part of the property: garden furniture and furniture in the residential building, as well as the motorboat.
You can allocate the purchase price to the economic assets. If it turns out that the purchase price allocation for garden furniture, furniture in the residential building, and the motorboat amounts to more than 10,000 EUR, your objection is likely to succeed. Please note that you may need to present expert opinions upon request in order to have a chance.
I hope I was able to assist you.
If you have any further questions, please feel free to use the inquiry function.
Best regards,
Dr. Yanqiong Bolik
Tax consultant
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 9332 2657
Email: info@zdbz.de
