- Decision dated March 20, 2025, case number III R 14/23
- Concerns extended reduction and three-object limit for first-time property sales in the sixth year
- The Federal Fiscal Court ruled that if no property sales or preparatory actions occur within five years of acquisition, selling a significant number of properties in the sixth year may not constitute a commercial property trade
- The appeal by the defendant against the Münster Finance Court’s decision was dismissed
- The defendant is responsible for the costs of the appeal
- The case involved the A GmbH, which was primarily engaged in property management and rental
- A GmbH sold properties for the first time in 2013, which were acquired in 2007
- The court examined whether A GmbH’s activities constituted a commercial property trade during the years 2011 and 2013
- A GmbH was part of a larger group with various companies having different business purposes, including property rental and sales
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.
