Federal Fiscal Court annuls income tax for heirs of real estate

The tax office claimed income tax as it took the view that the man had acquired part of the property. The legal basis for this claim was based on the provisions for 'private sales transactions': anyone who resells a property within ten years of acquiring it is subject to income tax.

The exact amount in dispute was not published by the Federal Fiscal Court, as tax secrecy applies to proceedings before the fiscal courts.

In the original hearing before the Munich Fiscal Court in 2021, the man had still suffered a defeat. However, the IX Senate of the Federal Fiscal Court came to the conclusion that the acquisition of the two children's inheritance share is not to be regarded as a conventional property purchase. Therefore, the corresponding provision regarding 'private sales transactions' does not apply in this case.

Source: WELT 18.01.2024