Rental to member of the community of heirs
August 13, 2012 | 25,00 EUR | answered by Andreas Schupp
Dear Sir or Madam,
we are a total of 4 members of an inheritance community. However, the ownership shares are different.
My ownership share in the entire property is 58.33%, while the other heirs have 25% and 8.33% each.
Now to my question.
My brother wants to move into the apartment on the 1st floor of this house. The inheritance is not spatially divided. My brother owns 8.33% of the total property.
The apartment is approximately 70 sqm in total.
He now needs a rental contract.
How should/can this be justified? After all, he is also a partial owner (because there is no notarized spatial division of the property)?
Do all members of the inheritance community have to sign this contract as landlords?
Who has to declare income from the rent and in what proportions? Or can this be done through one person?
I would be very grateful for any information.
Dear questioner,
Thank you for your response which I will answer as part of your request.
Please note that omitting, adding, or changing the facts could alter the result.
Since the property is obviously owned by an undivided community of heirs, the community of heirs receives income from the fruits of your assets.
The heirs of this community of heirs are allocated the income in proportion to their share in the community of heirs (in your case, 58.33% of the income).
If a co-heir wants to use the property or parts of it for private purposes and the transfer is not gratuitous by all co-heirs involved in the community of heirs, the community of heirs will generate rental income.
These income are to be declared by the community of heirs in a so-called separate and uniform determination declaration
and will then be separately determined by the tax office for the participating co-owners through a determination notice.
Contracts are generally concluded by a co-heir designated by the community of heirs.
If the property is transferred gratuitously by all co-heirs, none of the participants will generate income.
A possible tax donation from the remaining co-heirs may need to be examined under certain circumstances (not part of your question).
If the property is divided through inheritance settlement (due to the question about the division of the property) and only one becomes the sole owner, the co-heir taking over the property will generate income from potential rental.
I hope my explanations have helped you and remain
Yours sincerely
