Utilization of tax opportunities
December 3, 2009 | 25,00 EUR | answered by Matthias Wander
Good day,
I would like information regarding the following matter:
In April 2009, I inherited a paid-for apartment south of Berlin. It was built in 1996 and purchased by my father for own use in 1997. He claimed the home ownership allowance. From 2005, he rented it out due to relocation.
I am now considering what to do with this apartment. Should I sell it or take advantage of tax benefits. Since it is not burdened with loans, I can't deduct much. Is it possible for me, as the heir, to utilize the Special Depreciation Allowance for the East? If so, what do I need to do? Or do you have any other advice/suggestions for me in this regard?
Thank you.
Dear inquirer,
Thank you for your inquiry, which I would like to answer based on the information provided in an initial consultation.
In the case of an inheritance, the assets are transferred to the heir through universal succession. The heir then steps into the legal position of the deceased. This means that the original acquisition costs and acquisition date are attributed to you. You take over the amount, type, and remaining term of the depreciation from your father. Additional depreciation cannot be granted.
You can proceed with the apartment as follows:
1. Owner occupancy:
No tax consideration
2. Rental:
The rental income minus operating expenses (depreciation, maintenance expenses, property tax, house insurance, property manager, etc.) will be taxed as part of the income tax assessment.
3. Sale:
Since the apartment was acquired in 1997 and this date is attributed to you as part of the universal succession, the speculation period (10 years) has expired. Therefore, you could sell the apartment tax-free.
I hope this provides you with an initial overview.
Best regards,
Wander
Tax consultant
