Court Ruling on Tax Liability for Additional Requests in Property Acquisition with Building Construction

• The court ruling on October 30, 2024, addresses the tax liability of additional requests during property acquisition with a building yet to be constructed.
• The Federal Fiscal Court’s decision is partially similar to another ruling on the same date.
• Additional fees for agreed special requests are subject to real estate transfer tax if legally connected to the acquisition.
• The tax must be determined in a separate notice.
• The plaintiff’s appeal against the Bremen Finance Court’s decision was dismissed as unfounded.
• The plaintiff is responsible for the costs of the appeal.
• The plaintiff and his wife purchased property shares with special ownership rights to apartments and parking spaces.
• The building was not constructed at the time of contract signing, and the seller was responsible for its construction.
• The contract allowed for buyer’s change requests if they covered additional costs.
• The plaintiff and his wife requested special features, incurring extra costs.
• The tax office issued additional tax assessments based on the total consideration, including special requests.
• The plaintiff contested the tax assessment, arguing that special requests did not constitute additional services under the law.

Source: bundesfinanzhof.de

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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