Federal Finance Court decides: No income tax on the sale of inherited real estate

Federal Finance Court decides: No income tax on the sale of inherited real estate

According to a report by www.merkur.de, the Federal Finance Court in Munich has decided that in future no income tax will be due when an inherited property is sold. This also applies to real estate that is part of a community of heirs. The tax office originally levied income tax based on the sale of real estate by a person who was part of a community of heirs. However, the court ruled that this was wrong because the assets being sold had not been previously purchased.

The Federal Finance Court's ruling may have an impact on the real estate market. The elimination of income tax on the sale of inherited real estate could increase the attractiveness of inherited real estate for heirs. This could lead to increased demand for inherited properties and thus an increase in property prices. In addition, the willingness to accept an inherited property could increase because the tax burden is reduced.

Properties that are in communities of heirs could also become more attractive, as the sale of these properties is now tax-advantaged. This could result in communities of heirs being more inclined to sell properties, which in turn could lead to an increased supply of properties on the market.

Overall, the Federal Finance Court's ruling could have an impact on supply, demand and prices on the real estate market. It remains to be seen how these developments will actually take shape in the future.