Ask a tax advisor on the topic of Real estate taxation

Sale in 2 installments to spread the revenue over 2 years.

November 13, 2011 | 20,00 EUR | answered by Michael Herrmann

In which year is the profit from the sale of real estate subject to taxation? What happens if the purchase price is received in 2 installments and the turnover of the year lies in between? How could this procedure be justified or formulated in the notarial contract?

Michael Herrmann

Dear inquirer,

First of all, thank you for your inquiry, which I will gladly answer based on the information provided and in the context of your initial consultation. The response will be based on the description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.

Regardless of whether the profit was generated within a commercial business or through a private sale transaction, the profit is subject to taxation in the year of realization. The key date for the private sale transaction is the day of the notarial purchase agreement. There is no way to influence the timing of taxation through payment modalities.

I hope that these details have provided you with an adequate overview of the situation in the context of your inquiry and this initial consultation.

Best regards,

Michael Herrmann
Tax Advisor
Diploma in Financial Management (FH)