Taxation of profits from disposal transactions
March 5, 2013 | 35,00 EUR | answered by Oliver Burchardt
I currently intend to sell a rented condominium. I bought the apartment cheaply about 4 years ago. As prices are currently very high, I would make a significant "capital gains tax" profit, which would be taxable. I am aware that this does not apply if a) the property is held for at least 10 years, b) is owner-occupied or has been owner-occupied in the last 3 years before the sale. What should I pay special attention to before the sale - or is there a possibility of making a different investment (e.g. another property) to reduce the tax burden (approx. €55,000)?
Thank you very much for your response & best regards.
Dear inquirer,
Thank you for your inquiry, which I would be happy to answer as part of an initial consultation.
Unfortunately, section 23 of the Income Tax Act (EStG) offers little room for tax planning. If the sale is made within the deadline, the taxable profit is determined by the difference between the sale and purchase price. There are no possibilities for structuring here.
Furthermore, a transfer to other properties in private sales transactions is unfortunately not possible.
Therefore, you do not have any specific points to consider in order to save taxes.
Kind regards,
Oliver Burchardt
Tax Advisor
... Are you also interested in this question? 
