Case law on property income tax: extension of the principal residence exemption

12. März 2018 / Mag. Markus PEIER

Profits from the sale of private property are generally subject to property income tax.

However, income from the sale of private homes or condominiums, including land, shall be exempt from taxation if it has served as the principal residence of the seller for at least two years continuously from the date of purchase or manufacture (composition) to the date of sale and the principal residence is abandoned or within the last 10 years preceding the date of the sale. have served as their principal residence for at least five consecutive years and the principal residence is abandoned.

Die Finanzverwaltung vertritt in den Einkommensteuerrichtlinien die Ansicht, dass Hauptwohnsitzzeiten des Verkäufers vor dem eigenen Erwerb beachtlich sind, wenn der Verkäufer das Eigenheim oder die Eigentumswohnung geerbt oder geschenkt erhalten hat oder durch Aufteilung des ehelichen Gebrauchsvermögens oder der ehelichen Ersparnisse nach § 83 EheG erworben hat. Insbesondere die vom Mieter gesammelten Hauptwohnsitzzeiten im Mietobjekt vor dem eigenen Erwerb dieses Mietobjektes (Eigenheim oder der Eigentumswohnung) hat die Finanzverwaltung als unbeachtlich gewertet.

However, the Administrative Court has now ruled in a recent decision that periods of principal residence are also relevant which were acquired before the purchase of the condominium. It is therefore only important that the owner’s home or condominium has served as the principal residence of the seller for at least five consecutive years during the ten years preceding the sale – the law does not require civil or economic ownership.

This is to apply even if the flat was a condominium within the meaning of the Home Ownership Act 2002 at the time of sale, but not for the entire period of use as the principal place of residence.

In this case, in 2007 the future seller concluded a lease agreement with a non-profit building association as a tenant for a flat in a residential complex. In April 2013, the future seller bought the apartment from the non-profit building association and sold the apartment in September 2013 for a significantly higher price. After the purchase of the apartment by the later seller was established whether the property ownership of the apartment. Since the conclusion of the lease in 2007, the seller has used the apartment as his main residence until the sale in September 2013. In the end, the exemption from the main residence was successfully invoked by appeal to the Administrative Court.

Decision of the VwGH: Ra 2017/13/0005 of 24 January 2018.

12. März 2018 / Mag. Markus PEIER

Profits from the sale of private property are generally subject to property income tax.

However, income from the sale of private homes or condominiums, including land, shall be exempt from taxation if it has served as the principal residence of the seller for at least two years continuously from the date of purchase or manufacture (composition) to the date of sale and the principal residence is abandoned or within the last 10 years preceding the date of the sale. have served as their principal residence for at least five consecutive years and the principal residence is abandoned.

Die Finanzverwaltung vertritt in den Einkommensteuerrichtlinien die Ansicht, dass Hauptwohnsitzzeiten des Verkäufers vor dem eigenen Erwerb beachtlich sind, wenn der Verkäufer das Eigenheim oder die Eigentumswohnung geerbt oder geschenkt erhalten hat oder durch Aufteilung des ehelichen Gebrauchsvermögens oder der ehelichen Ersparnisse nach § 83 EheG erworben hat. Insbesondere die vom Mieter gesammelten Hauptwohnsitzzeiten im Mietobjekt vor dem eigenen Erwerb dieses Mietobjektes (Eigenheim oder der Eigentumswohnung) hat die Finanzverwaltung als unbeachtlich gewertet.

However, the Administrative Court has now ruled in a recent decision that periods of principal residence are also relevant which were acquired before the purchase of the condominium. It is therefore only important that the owner’s home or condominium has served as the principal residence of the seller for at least five consecutive years during the ten years preceding the sale – the law does not require civil or economic ownership.

This is to apply even if the flat was a condominium within the meaning of the Home Ownership Act 2002 at the time of sale, but not for the entire period of use as the principal place of residence.

In this case, in 2007 the future seller concluded a lease agreement with a non-profit building association as a tenant for a flat in a residential complex. In April 2013, the future seller bought the apartment from the non-profit building association and sold the apartment in September 2013 for a significantly higher price. After the purchase of the apartment by the later seller was established whether the property ownership of the apartment. Since the conclusion of the lease in 2007, the seller has used the apartment as his main residence until the sale in September 2013. In the end, the exemption from the main residence was successfully invoked by appeal to the Administrative Court.

Decision of the VwGH: Ra 2017/13/0005 of 24 January 2018.