Real Estate: Take Advantage of Tax Benefits: New Ruling Favors Selling Houses Within the Family
If parents sell a property to their children and agree to an interest-free installment payment, no taxable capital gains arise. The Federal Tax Court (BFH) is changing its case law.
A German couple sold a developed plot of land to their daughter, agreeing to defer payment and allow her to pay in installments without interest from May 2021. They considered the discounted price a gift to their daughter and did not report any interest from the installment agreement in their 2021 and 2022 income tax returns. The case was recently decided by the Bundesfinanzhof, with the reference number VIII R 30/24.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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