Capital Gains on selling house
Posted: Tue Sep 23, 2025 10:26 am
Right,
I want to ensure I am understanding this correctly. I am referring to a house the GF is selling. It is an absolute, convoluted mess - both the house and background on this purchase.
She bought the house with a mate back in 2008. The house is in Sachsen Anhalt. They are both from HH, but the GF currently lives in Thüringen and will be moving to Bayern (to me) in November. She is an artist, aye the starving type, and has no regular income. The Finanzamt in Thüringen informed her, in writing, no need to do a tax declaration unless things change.
The house will be sold this week at auction. They paid (in 2008) 80,000€, interest over the years has amounted to roughly 120,000€ and they still owe roughly 10,000€ on the house. See? A right mess!
The house will most like sell at or below what was paid; i.e., no profit at all. Auction firm will also take their cut, 11,9% of the selling price.
I told her the following as I believe no capital gains tax will be owed, but will most like need to file a tax declaration due to the deposit into her bank to simply notify the Finanzamt:
1. You've owned the house for more than 10 years.
2. It's not been your residence for a while now (ca. 3 years).
3. You're single.
4. Chances are it will sell at or below what you paid for the house.
5. It will most likely sell below 250,000€
True or false?
I want to ensure I am understanding this correctly. I am referring to a house the GF is selling. It is an absolute, convoluted mess - both the house and background on this purchase.
She bought the house with a mate back in 2008. The house is in Sachsen Anhalt. They are both from HH, but the GF currently lives in Thüringen and will be moving to Bayern (to me) in November. She is an artist, aye the starving type, and has no regular income. The Finanzamt in Thüringen informed her, in writing, no need to do a tax declaration unless things change.
The house will be sold this week at auction. They paid (in 2008) 80,000€, interest over the years has amounted to roughly 120,000€ and they still owe roughly 10,000€ on the house. See? A right mess!
The house will most like sell at or below what was paid; i.e., no profit at all. Auction firm will also take their cut, 11,9% of the selling price.
I told her the following as I believe no capital gains tax will be owed, but will most like need to file a tax declaration due to the deposit into her bank to simply notify the Finanzamt:
1. You've owned the house for more than 10 years.
2. It's not been your residence for a while now (ca. 3 years).
3. You're single.
4. Chances are it will sell at or below what you paid for the house.
5. It will most likely sell below 250,000€
True or false?