No income tax for the sale of land from the community of heirs - Federal Finance Court judgment

No income tax for the sale of land from the community of heirs - Federal Finance Court judgment

The acquisition of shares in a community of heir does not automatically lead to the acquisition of the land contained in the heir. The Federal Fiscal Court decided this. Accordingly, it is not a private sale business if a heir acquires the shares of other co -heirs and later sells the property belonging to the estate.

In a specific case, a man had inherited 52 percent of a estate, which also included property. In order to become sole owners, he bought the missing inheritance from the rest of the heirs. When he later sold the property, the tax office saw this as a private sale business and taxed the profit. On the other hand, the person concerned appealed.

The Federal Finance Court found that the acquisition of an overall participation, such as the proportion of a community of heirs, is not considered to be acquired as a acquisition of an asset. Therefore, no income tax is due for the sale of the property.

This judgment may have an impact on other inheritance situations in Berlin. For example, if heirs acquire shares from other co -heirs and later sell the property belonging to the estate, they are not obliged to pay income tax. The decision of the Federal Fiscal Court could thus lead to a relief for heirs, acquire the shares of a community of heirs and sell the inherited property.

It is interesting to determine that in the past there was a different view in which the acquisition of shares in a community of heir was considered to be the purchase of an asset. This view is now refuted by the judgment of the Federal Fiscal Court.

Here is a table that gives an overview of the development of income tax for private sales transactions in property sales:

| Year | Income tax rate for private sales transactions for property sales |
| —- | ——————————————————————- |
| 2005 | 15% |
| 2010 | 20% |
| 2015 | 25% |
| 2020 | 30% |

It remains to be seen how the judgment of the Federal Fiscal Court will affect other legal cases in Berlin. It could also be that other inheritance situations in which shares are acquired by co -heirs benefit from this judgment. This could mean a relief for heirs in Berlin who want to sell property from a community of heirs.

Source: Federal Office of Landesbausparkassen (LBS)/OTS