Joint property division income
July 27, 2010 | 25,00 EUR | answered by Michael Herrmann
In the explanation for the separate determination of the basis for income taxation, a problem arose for the first time due to special repayments made by a shareholder:
Background: Property company with 2 participants and different loan shares.
Rental income, depreciation are each offset at 50%.
Total rental income: 10,000
Depreciation: -3,000
Interest: -8,000
In the tax software WISO Steuer, I have a result of -1,000. However, shareholder A should be allocated 6,000 of the interest and shareholder B 2,000. The allocation of the result of -1,000 should therefore be -2,500 for A and +1,500 for B.
The forms only provide for allocation according to ratios (In previous years I had determined the allocation and specified the ratios, however, the result was negative for both).
My question: Is the allocation as described above even possible and where should the entry be made in the forms? Or alternative solution.
Thank you.
Dear questioner,
First of all, thank you for your inquiry, which I would be happy to answer based on the information provided and considering your efforts in the context of an initial consultation. The response is based on the facts presented. Missing or incorrect information about the actual circumstances can influence the legal outcome.
In the separate and uniform determination, initially only the result determined according to the general allocation key is distributed. This does not include interest income provided differently.
As a result, there is a result of 7,000 euros, which is distributed equally among the shareholders. This result is explained in Annex V. The shares attributable to the shareholders (50/50) are explained in Annex FE1 line 5.
The interest expenses are to be explained for each shareholder in Annex FE1 line 7, depending on the amount attributable.
As a result, the income of -1,000 euros is now determined in Annex FE1.
The only special feature is that the interest income is only explained in Annex FE1, as they are not distributed among the shareholders according to the general allocation key.
I hope that these explanations have given you an initial overview of the situation within your efforts and remain
Yours sincerely,
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax consultant
