What tax benefits are there when selling a self-used property?
February 7, 2022 | 50,00 EUR | answered by Mia Pilz
Dear tax advisor,
My name is Daniel Heuser and I have a question regarding the sale of my self-used property. I bought the house several years ago and lived in it myself. However, I have since moved to another city and have decided to sell the property.
My concerns mainly lie with the tax aspects of this sale. What tax benefits can I claim when selling a self-used property? Are there ways to save taxes or even achieve tax advantages?
I would like to learn more about how I can optimally benefit from this sale from a tax perspective. Are there specific tax regulations or special deductions I should be aware of? What are the tax implications of selling a self-used property on my income tax return?
I would greatly appreciate it if you could help me better understand the tax aspects of selling my property and maximize any potential tax benefits. Thank you in advance for your support.
Sincerely,
Daniel Heuser
Dear Mr. Heuser,
Thank you for your inquiry regarding the sale of your owner-occupied property. The sale of an owner-occupied property can indeed have tax implications that it is important to be informed about. I am happy to provide you with an overview of possible tax benefits and tax consequences that may be relevant when selling your property.
First and foremost, it is important to know that profits from the sale of an owner-occupied property are usually tax-free. This means that you do not have to pay taxes on the profits as long as you have used the property for your own residential purposes and it has been your main residence for at least two years. This rule applies to individuals who do not own more than one property for their own use.
However, if you sell the property before the expiration of ten years from the acquisition, there may be tax consequences. In this case, you will have to pay taxes on the profits made from the sale. There are still various ways to achieve tax benefits in this situation. For example, expenses such as agent fees or renovation costs can be deducted from the profits to reduce the tax burden.
Furthermore, there is also the possibility to claim special depreciation if the property is, for example, listed as a historical monument or has undergone energy-efficient renovations. These depreciation allowances can also help reduce the tax burden.
When it comes to your income tax return, it is important to know that the sale of an owner-occupied property must be reported in Annex V of the tax return. All relevant information about the sale and the profits made should be detailed in this section.
I hope that this information is helpful to you and assists you in understanding the tax aspects of selling a property better. If you have any further questions or need additional assistance, please do not hesitate to contact me.
Best regards,
Mia Pilz
