Real-Estate Tax Compliance — Current Developments

We last reported on the current hot spots from the tax audit in FYB 2018. Since then, a lot of new things have happened, not only on the side of jurisprudence, but also on the side of legislation. "ATAD" and "DAC6" should be mentioned here as keywords whose impact will certainly extend far beyond the turn of the year 2020/ 2021. With this article we would like to present again some current topics from our Real Estate practice and, as far as possible, give recommendations for action. By nature, we have a selective The company has selected a number of topics, leaving out other hot topics such as the temporary reduction in sales tax.

Purchase price allocation to land and building

Incidental acquisition costs such as real estate transfer tax, legal and tax DD and, if applicable, other appraisal costs is often one of the first acts in the tax life cycle of a leased property, especially with the aim of determining the future depreciation base. Often, a dispute with the tax office is pre-programmed, especially since the interest of the taxpayer regularly aims at a high building share and thus at the highest possible building depreciation.