As of: February 1, 2024, 11:44 a.m
By: Marco Blanco Ucles
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If a person inherits a property and sells it, no income tax will be due in the future.
This was decided by the Federal Finance Court in Munich.
Munich – In addition to mourning the deceased, an inheritance is usually accompanied by other problems.
The administration of the estate is often complicated - and not just for married couples without children.
The Federal Finance Court in Munich, Germany's highest financial court, has now provided clarity on at least one thing: Inherited property will no longer be subject to income tax when it is sold in the future.
Groundbreaking ruling: Income tax is waived when selling a property from the estate of a community of heirs.
© Bihlmayerfotografie/IMAGO
The reason for this was the case of a person who was part of a community of heirs consisting of three heirs.
Real estate, the inheritance of which entails a lot of taxes, was also part of the assets of the community of heirs.
The person concerned bought the shares of the other two heirs and then sold the properties.
The tax office then levied income tax because the sale was a private sale transaction.
Specifically, this means: Anyone who sells a property within ten years of purchase must pay income tax.
According to information from the real estate agent
“Immobilisimo”,
the properties were sold in 2018.
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The Federal Finance Court has now countered the tax claim against the plaintiff.
The official press release states: “The prerequisite for taxation is that the assets sold have also been acquired beforehand.
This is not the case with regard to the purchase of shares in a community of heirs with regard to the assets belonging to the estate.” As a result, the plaintiff was right – in the second instance.
In 2021, the person lost in the first instance – before the Munich Finance Court.
However, the Federal Finance Court has now decided in favor of the plaintiff, potentially making it easier for people to deal with inherited real estate in the future.
The tax office must bear the costs of the procedure, according to the Federal Finance Court's ruling.