Compensation and one-time sale
September 11, 2013 | 30,00 EUR | answered by Steuerberater Thomas Textoris
I am selling a garden shed and a driveway gate for 500 euros each, plus a sales revenue of approximately 2000 euros for curtains, wall unit, couch, and fitted kitchen. How do I need to declare and pay tax on these earnings? (I bought the house two years ago).
While repairing a window in a rented room on the 1st floor, I accidentally dropped a tool which caused damage to a car parked in front of the house. The car owner is requesting compensation from me. Can I deduct the payment for this compensation as advertising costs, and does the car owner need to declare this "income" for tax purposes?
Thank you for your answers.
Dear questioner,
in the context of initial advice and your fee commitment taking into account the regulations of this forum, I would like to answer your question.
In the case of the sales you mentioned, a private sales transaction according to § 22 No.2 in conjunction with § 23 (1) No. 2 EStG would generally need to be examined if the period between acquisition and sale does not exceed one year. According to the current regulations, items of everyday use are no longer covered by this provision (§ 23 (1) No.2 sentence 2 EStG). The items you mentioned are such everyday objects.
The sales are exempt from taxation.
The compensation payment to the car owner is not considered a deductible expense. Deductible expenses are those incurred for the acquisition, safeguarding, and maintenance of income. The payment is not directly related to the generation of income from rental and leasing activities.
The injured party does not have any "income" to be taxed. I assume that the car in question is a private vehicle from which no income is being generated (§24 No.1 EStG).
Best regards,
Thomas Textoris
Tax advisor
