Ask a tax advisor on the topic of Rental / Leasing

Relevant criterion for the transfer of ownership in inheritance

May 27, 2011 | 30,00 EUR | answered by Michael Herrmann

Dear Sir or Madam,
The testator of a rented terraced house passed away in 10/2010 and left behind the house with a handwritten will. The court activities
- Opening of the will,
- Issuance of a certificate of inheritance (exclusively for presentation to the land registry office),
- Entry in the land register
lasted until 05/2011.
The existing lease agreement, in the name of the deceased, has not been changed so far.

At what point in time is the transfer of ownership relevant for income tax purposes (rental expenses):
- Date of death of the testator
- Entry of the heir in the land register as the owner
- ...?
Which documents does the tax office check in this context?

Thank you in advance for a response
and kind regards
Puzicha

Michael Herrmann

Dear inquirer,

First of all, thank you for your inquiry, which I would be happy to answer based on the information provided and in the context of your initial consultation. The response is based on the description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.

For income tax purposes, the source of income is attributed to the heirs from the date of the deceased's death. From that day onwards, the heirs will earn income from rental and leasing.

The acquisition is gratuitous. Therefore, the depreciation of the deceased continues. Any unused depreciation volume remains intact. Additional costs related to the transfer and estate administration are not taken into account.

The tax office will at least review the rental agreements to verify the reported rental payments. Furthermore, the expenses need to be documented. It is advisable to include the probate certificate with the transfer.

I hope that these explanations have provided you with a sufficient overview of the situation in the context of your initial consultation and I remain

Yours sincerely,

Michael Herrmann
Diploma in Finance (University of Applied Sciences)
Tax Advisor