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About GeraldW

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  • Location Berlin
  • Nationality British
  • Gender Male
  • Year of birth 1981
  1. Sanierungsgebiet - Selling an apartment

    Heard about Rental price caps, but never selling price caps...  Seems a bit crazy to me - it reduces the taxes they get from the sale... And makes no difference to the housing availability, because it's not creating a new house. (And the new owner won't be able to rent it out for any more than you either)   TBH - I'm surprised you want to sell... Although I guess you might not want to anymore! 
  2. Taxes if house is credit free

    I've got a steuerberater, who'se been handling the property taxes for the rental income for the last 7 years - I'm just not sure that his heart is really in it...?  (It takes a week or two to get a reply on anything, and then there is little to almost no advice accompanying any answers to the questions.  Not sure if it is a translation issue, a liability thing, or he's just more of a spreadsheet compiler than Tax reduction master, but just have that niggle of a feeling that with the sums involved, its worth researching for myself. )   To my understanding, there is no dedicated Capital Gain Tax -  The gain (Sold price minus original price + all expenses minus amortisations) gets entered into your Personal Income Rate.    So, my personal income for the year leaps up to ~Eur 220K, and this get taxed at 42%.    So, I was thinking that if I could maybe claim her tax allowances, it'd save us a bit on the tax - But on the flip side we're have to relocate to Germany for a few months at least, which would probably cost more than we'd save on tax.  
  3. Taxes if house is credit free

    So, semi-regretfully, I'm selling up our rental apartment (signing at the notary this month) to hopefully buy our 'forever' home.  On the plus side, theres a hefty amount of profit, but on the down side, as we've held the property for only 8 years,  I'm going to see a whole heap of Tax.  (around Eur90k after all the deductions. )   So I'm wondering if there are any creative (but legitimate) ways of minimising this tax?   Only had one thought so far: - I'm married, non-resident in Germany (currently in the UK).  As far as I'm aware, despite signing the deal this year, the tax will only hit in the 2019 tax year (payable 2020), as thats when the money transfers.  Could we live for a few months in Germany in 2019, declare ourselves resident for tax purposes, split the income with my wife, and thus reduce the tax obligation in this way? (As a non-resident, to my understanding you cannot split your taxable income with your wife.  I think theres additionally some solidarity fee (5.5%?) for non-residents.  This might reduce the total? )   TT'ers - Any comments or other ideas?