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

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

According to a report by www.merkur.de,

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. The case that led to this decision concerned a community of heirs where the property was sold and the tax office then levied income tax. In the first instance, the person lost before the Munich Finance Court, but in the second instance, the Federal Finance Court ruled in favor of the plaintiff, potentially making it easier to deal with inherited real estate in the future.

This decision could have a massive impact on the real estate market. People who want to inherit a property and sell it may feel encouraged as they will no longer have to pay income tax. This could lead to an increase in property sales, especially if the heirs do not plan to keep the property. In turn, this could lead to increased supply in the real estate market, which in turn could have an impact on prices. In addition, there could also be changes in inheritance law and the tax treatment of inherited real estate.

Overall, it is important to closely monitor developments in the real estate market surrounding this decision, as it could potentially have far-reaching implications. Real estate experts and market participants should prepare for the fact that the dynamics of the real estate market could change in the coming years based on this landmark decision by the Federal Finance Court.