Taxes

Why The Share Of The Maintenance Reserve Does Not Reduce The Real Estate Transfer Tax

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Anyone who, as a real estate buyer, becomes a member of a homeowners association also benefits from their maintenance reserve. However, this is not directly attributable to any owner. It follows from this that it cannot reduce the assessment base for real estate transfer tax.

Whether it’s your own home or commercial property – for years prices seem to have only known one direction: up. But the purchase price alone is not enough. Finally, there are also numerous ancillary costs that are particularly painful for future owners, especially in times of high real estate prices. So the desire to keep this additional burden as low as possible is understandable. A critical look at the calculation bases can sometimes – if not always – be helpful.

The share of the maintenance reserve does not reduce the assessment basis

The buyer of various partial property rights had no success in his efforts to reduce the real estate transfer tax to be paid. The responsible tax office had calculated the levy from the purchase price of 40,000 dollars, which the partial ownership in connection with separate ownership of four commercial units and nine underground parking spaces had cost. The portion of the maintenance reserve of around 15,000 dollars, which had also passed to the buyer, was not taken into account. In his opinion, however, this amount should have reduced the assessment base, so that the purchase price for the 13 properties considered individually remained below the value limit of 2,500 dollars and the acquisition would have been tax-free.

Membership in apartment owners’ association

It is legally stipulated that the purchaser also becomes a member of the homeowners association when purchasing partial property. Instead, their acquisition is inextricably linked with ownership of the real estate share . Their value is therefore included in the entire purchase price and can hardly be determined separately.

PRACTICAL TIP: ADDITIONAL COSTS WHEN BUYING REAL ESTATE

In addition to the high purchase prices for real estate in many regions for years, buyers have to face some additional costs. Notary fees and land registry fees always have to be paid. Around two percent of the purchase price should be estimated for this. The real estate transfer tax is also due. This depends on the federal state in which the newly acquired property is located and is between 3.5 and 6.5 percent of the purchase price. Anyone hiring a real estate agent to search for a property pays 5 to 7 percent of the purchase price, half of which is borne by the seller. An expert opinion , which is particularly important for older properties, costs around 1,500 to 3,000 dollars. Ancillary costs of the property purchase can only be claimed for tax purposes if the buyer rent out the property or use it commercially . Anyone who moves into their own home or apartment must bear the full costs themselves.

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