Real estate taxation as a sole proprietor
March 30, 2015 | 50,00 EUR | answered by Anton Pernitschka
Good day,
I need your help with the following matter:
A sole proprietor (merchant) is offered a retail shop for purchase.
What options are available for tax purposes here?
A1. Can it be purchased as a private individual and then rented to the business?
A2. Can it be purchased as a GbR (husband and wife) and rented to the business?
B. The business purchases the retail shop itself.
The question arises as to what happens when the business activity (retail) is discontinued and the retail shop continues to be rented out.
What tax aspects need to be considered in all scenarios.
Thank you very much.
Dear Mrs. Ude,
In the context of an initial consultation and your fee commitment, taking into account the regulations of this forum, I would like to answer your questions.
A retail store can generally only be operated within the framework of a commercial business. However, if real estate is sold, a (private) purchaser can rent the property to a company as part of the income type of leasing and renting.
A property partnership (GbR) can also acquire real estate and rent it out to a company.
When discontinuing a commercial business, the hidden reserves must generally be dissolved. However, if there is a "dormant commercial business", there are (still) no hidden reserves to be dissolved. A dormant commercial business can be leased out as a whole. In this case, the "suspension of business activity" must be declared to the tax office. The rental and lease income from this are income from commercial business.
The answer was given based on your description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.
Sincerely,
Anton Pernitschka
Tax advisor
