Ask a tax advisor on the topic of Real estate taxation

Speculation tax on twice inherited undeveloped property

August 12, 2016 | 100,00 EUR | answered by StB Patrick Färber

Dear Sir or Madam,
I need information on a possible capital gains tax in the following case:
- In 2005, my father inherits an undeveloped plot of land from his sister, which has been in her possession since 1960, valued at approximately 900,000 euros.
- In 2006, the plot of land is transferred by my father to my mother for half of it.
- My father passes away in 2009.
- My mother and I inherit his half of the plot of land, each owning 50% (thus, my mother owns 75% and I own 25%).
- In 2016, my mother gifts me her 75% share.
- Therefore, I have been the sole owner of the property since 2016.
- The plot of land is now to be sold in 2016.
Questions:
Do I need to consider a holding period for capital gains tax?
If yes, for how long?
How much capital gains tax would apply?

Thank you.

StB Patrick Färber

Dear inquirer,

According to your explanation, the property has been transferred free of charge since 1960. Therefore, there have been no acquisition transactions. The speculation period has long been exceeded. The sale is not taxable.