Federal Finance Court rules in favor of real estate heirs: No income tax on the sale of inherited property

Federal Finance Court rules in favor of real estate heirs: No income tax on the sale of inherited property

According to a report by www.n-tv.de, the current BFH ruling deals with the question of whether income tax has to be paid when selling inherited real estate. According to the Federal Finance Court, heirs who resell the property within ten years of purchase must pay income tax. However, in a recent ruling, the BFH decided that the tax offices may not charge income tax if a community of heirs sells real estate and a member of the community acquires the shares of the other members in order to resell the property.

The ruling has a positive impact on heirs of real estate. It reduces the tax burden that may be imposed on the sale of inherited property. This could potentially encourage more people to sell inherited properties, which could impact the property market. An increased number of property sales could lead to an increase in supply on the market and therefore influence prices.

It is important that property owners and potential heirs keep an eye on these legal developments and adjust their tax and legal decisions if necessary. It is also advisable to seek legal and tax advice if you have any questions or uncertainties in order to clarify the individual implications.