Speculation tax
April 6, 2017 | 30,00 EUR | answered by Dipl.-Kfm. Frank-Olaf Illiges
Hello, my husband and I bought a condominium in June 2011 and lived there until November 2014. In October 2014, my parents moved into the apartment rent-free and have been living there rent-free ever since. My parents pay the maintenance fees, while we continue to pay the mortgage on the apartment.
Now we want to sell
- our house (land + newly built semi-detached house, completed in October 2014, moved in at the end of November 2014) that we bought in October, as well as
- our aforementioned condominium.
My question is, will there be capital gains tax for the condominium?
Dear inquirer,
Thank you for your inquiry, which I will gladly answer taking into account your effort and the rules of this platform.
Please note that my explanation is based on the facts presented, and that adding, omitting, changing information or the ambiguity of the information can change the tax result. Please be aware that this cannot replace individual comprehensive advice.
The free transfer of the condominium to your parents does not constitute personal use for residential purposes (TZ 23 of the BMF letter dated 05.10.2000). Since you have not used the condominium for personal residential purposes in the year of sale and the two preceding years, the proceeds from the sale are subject to taxation.
Sincerely,
Dipl.-Kfm. Frank-Olaf Illiges
Tax consultant
Ringstraße 98
33378 Rheda-Wiedenbrück
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