Ask a tax advisor on the topic of Trade tax

business income - reductions

August 20, 2013 | 50,00 EUR | answered by Michael Herrmann

When determining the trade income, is the rent for leased land also taken into account in the item "Reductions (unit value)"?

Michael Herrmann

Dear inquirer,

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

The trade income must be reduced by 1.2% of the sum of the unit values ​​for commercial real estate according to § 9 No. 1 GewStG. The unit value is determined in the unit value notice after acquisition. For trade tax purposes, the unit value is to be set at 140% (§ 121a BewG). Different rates apply for the new federal states depending on the type of property.

Leased properties are not to be considered in the reduction of the trade income. The background of the provision is to prevent additional tax burden through trade tax, in addition to the property tax burden of the respective properties.

I hope that with this information, I have provided you with a sufficient overview of the situation within your commitment and this initial consultation, and remain

Yours sincerely,

Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax consultant