Tax payable when selling a house
September 28, 2009 | 20,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
Hello!
The following situation: In July 2002, my father transferred his 6-family house to me and retained the usufruct. Until September 2004, he still lived in one of the 6 apartments before he had to move to a nursing home. Last October, my father passed away, and now I am considering selling the house. In the meantime, I have taken out a mortgage of €80,000 for numerous renovation measures. What taxes will be due upon sale? Do I have to fully declare the proceeds, including speculation tax(?). Does the 10-year period apply to me, in which case it would be better to sell in 2012? I have also heard about a "footprint" rule. A clear statement about the tax implications of the sale (approximately €300,000) would be very helpful.
Best regards,
H. Hausmann
Dear client,
Thank you for your inquiry, which I would like to answer based on your information and in the context of your involvement in an initial consultation as follows:
I assume that the 6-family house is part of your private assets and not business assets, and was transferred to you free of charge as a gift, meaning you did not pay any partial consideration.
The gift in July 2002 does not constitute a purchase transaction for you, triggering the 10-year speculation period. If there is an acquisition without consideration, this "purchase" by the predecessor in title, in this case your father, is attributed to him. If the period between your father's acquisition and your planned sale exceeds 10 years, then the sale is completely tax-free.
I hope this information is helpful to you.
Best regards,
Ulrich Stiller
Tax Advisor
... Are you also interested in this question? 
