Real estate transfer tax for a share of an apartment in a property community
August 15, 2011 | 40,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
Hello,
I have acquired the ideal half of a condominium from a co-owner as part of a property community. How and where can I claim the real estate transfer tax and notary fees that have only accrued for me (and not for the entire apartment) for tax purposes?
In the context of the separate and uniform determination of tax bases for the property community, the costs can only be set uniformly for both owners. This would be unfair, as in this case I would only benefit tax-wise from half of the amount, even though I had to pay the entire tax and notary fees for my half of the apartment. At the same time, the second owner would have a tax advantage, even though they have nothing to do with the real estate transfer tax that has now been paid.
If claiming the costs is only possible within the framework of the separate and uniform determination... - does that concern operating expenses or depreciation? There should not be separate depreciation bases for owners and therefore different depreciation for the same object.
Besides the separate and uniform determination... (which concerns the property community), do I need to submit a separate attachment V+V to my income tax return for this real estate transfer tax (which has only accrued for me, for my half share of the apartment)? Or where can I claim it?
Thank you in advance and kind regards.
Dear client,
Thank you for your inquiry, which I would like to answer based on the information provided by you and in the context of your use in an initial consultation as follows:
The real estate transfer tax and notary fees paid by you are acquisition costs that cannot be deducted immediately as advertising costs, but only to the extent of depreciation on the building portion of the apartment. The part of the real estate transfer tax and notary fees that relate to the land are not deductible at all as part of the depreciation. For example, if it is assumed that 30% of the purchase price relates to the land, then 70% of the real estate transfer tax and notary fees are to be added to the purchase price as acquisition costs and then subject to depreciation.
However, depreciations can only be attributed to those who have incurred the acquisition or production costs (BFH, judgment of 7.10.1986, IX R 167/83, BStBl 1987 II p. 322). The depreciation on the acquisition costs incurred by you (including real estate transfer tax and notary fees) is attributed solely to you and is taken into account in the allocation of advertising costs in the separate determination of rental and leasing income. Therefore, different depreciation amounts will result.
In the context of the separate determination of rental and leasing income, the portion attributable to you from rental and leasing income is determined taking into account my above explanations. This portion must also be transferred to Annex V of your own income tax return, specifically in line 24 of Annex V.
I hope I was able to assist you.
Best regards,
Ulrich Stiller
Tax advisor/Business economist
