The real estate income tax (ImmoESt) is based on private property sales, which basically includes all sales transactions and thus transfers of privately owned property for consideration. In principle, the exchange of properties is also covered by ImmoESt.
The distinction between a transaction for consideration and a transaction free of charge is therefore decisive for the application of real estate income tax. In addition to land and buildings (e.g. condominiums, super-estates), the definition of real estate also includes rights equivalent to real estate (e.g. building rights).
How much real estate income tax on private property sales?
Unless an exemption, such as the main residence exemption or the manufacturer or builder exemption, applies, private real estate sales are subject to 30% real estate income tax. A distinction must be made between new and old properties when determining the income from the sale of private property and, consequently, the amount of property tax to be paid.
A new property or a “new case” is a property that was subject to tax as at 31.3.2012 (i.e. the previously applicable speculation period had not yet expired) or was only acquired after 31.3.2012.
If, on the other hand, a property was not subject to tax as at 31.3.2012, it constitutes an old property or an “old case”. In order to assess whether a property was still subject to tax on March 31, 2012 or not, the decisive factor is whether the speculation period of ten or 15 years applicable under the old legal situation had already expired. The distinction between old and new properties is crucial, as the income from old assets is generally calculated on a flat-rate basis.
What is an old case and what is a new case?
A legacy case therefore exists if the
- Acquisition before 31.3.2002 (10-year speculation period) or
- the acquisition took place before March 31, 1997 (15-year speculation period for the deduction of certain production costs over 15 years).
A new case exists if the property was subject to tax on the reporting date and therefore the
- Acquisition after 31.3.2002 or
- the acquisition took place after 31.3.1997.
In the case of a “new case”, the income generally represents the difference between the proceeds of the sale and the acquisition costs. In addition to the cash purchase price, the sale proceeds also include the assumption of liabilities (e.g. the assumption of an existing loan) by the purchaser.
The acquisition costs are essentially to be increased by production expenses and maintenance expenses not yet deducted and reduced by previously claimed depreciation amounts. The income from the private sale of real estate calculated in this way is subject to the special tax rate of 30%.
In the case of an “old case”, the taxable income is generally determined on a flat-rate basis. The flat-rate acquisition costs amount to 86% of the sales proceeds, resulting in income of 14%. Applying the special tax rate of 30% results in an effective tax burden of 4.2% for old assets
If grassland was reclassified as building land after January 1, 1988, the acquisition costs to be determined at a flat rate amount to 40% of the sale proceeds, resulting in an effective tax burden of 18% on the sale proceeds. If a reclassification already took place before January 1, 1988, it is not taken into account for the calculation of real estate income tax.
This article was written by www.tpa-group.at
Related posts:
