Later decision on commercial real estate trading is sufficient according to BFG

Or Real estate sales also commercial real estate trading be placed in or from private assets achieved by extracting different tax consequences with oneself - not least the possibility of asserting one's rights Manufacturer exemption would run empty in the context of commercial real estate trading. The Manufacturer exemption leads to Liberation from profits from the sale of a self-constructed building as part of the Property income tax; the Land and property remain subject to tax unless the requirements for the main residence exemption are also met.

The BFG had (GZ RV/1100486/2016 of 11.6.2018) had to deal with a situation in which on a property that originally with the intention of creating a Basic reserve for themselves and for others own children to want to create, Ten years later several Residential apartments built and to third parties sold were. During the construction of the condominiums, the two property owners were involved in project management and also for liability considerations a "Wohnbau-GmbH" were founded. The two natural persons - at the same time a shareholder of Wohnbau-GmbH - stayed die Owners of the apartments and were of the opinion that the Sale of the apartments from their private property It turned out that the Manufacturer exemption Therefore, it should be applied, not least because the two property owners were named as sellers in all purchase contracts with the apartment buyers.

At the Definition between commercial real estate trading on the one hand and Asset management On the other hand, in the present case the following aspects are fundamentally relevant: for den commercial real estate trading. In general, a commercial enterprise is characterized by sustainable, with Profit-seeking undertaken activities constituting participation in economic activity are characterized.

• Successful efforts to obtain a building permit,
• Establishment of Wohnbau-GmbH as a construction company,
• Preparation of a value assessment report with subsequent parification and the resulting additional measures to enhance value,
• regular, targeted sales of the individual apartment units (specifically 11 apartments within just under half a year),
• Listing of the apartments on a specially created website (including details about location, construction progress, quality of construction, etc.).

Referring to earlier case law, the BFG, that the Sale of land from the Private assets then no asset management more is represented by commercial real estate trading, when the Asset recovery in place of the use of assets in the Foreground This requires taking into account the specificities of (built-up) land – for example, the need for a Multi-year perspective, Because land is typically acquired and sold in a sporadic manner and in a small number of cases.

I'm concrete case is fully taxable commercial real estate trading in the two natural persons even given when the Willingness to sell apartments on a regular basis only after the construction of the apartments is completed It was created. Following the BFG, it is not necessary for commercial real estate trading to have the intention to sell already at the time of purchase or the time the property is built. Furthermore, the fact that two residential blocks with a total of 14 apartments and garages and parking spaces were to be built at the time of construction speaks volumes. against self-use by the two property owners and consequently for commercial real estate trading.

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