Online message – Thursday, October 5th, 2023
Income tax / procedural law | Responsibility for the release of a reserve after the departure of a co-entrepreneur (BFH)
The subsequent release of a reserve in accordance with Section 6b EStG, which is later required due to the expiry of the reinvestment period, is not to be decided in the profit determination procedure of the co-entrepreneur, but rather in the income tax procedure of the former co-entrepreneur (BFH, judgment of July 12, 2023 – XR 14/21; published on October 5th. 2023).
Facts: Since 2000, the plaintiff has held a 95% stake in a commercial partnership that owned developed property. In 2006 he sold his stake.
In the KG’s profit determination procedure for 2006, he initially unsuccessfully applied for the capital gain, which was entirely attributable to the assets of land and buildings, to be placed in a reserve in accordance with Section 6b EStG. It was only during the objection process that this came about…