You are selling a commercial property in Germany and intend to invest in another location later. In conversation it is said that the profit can be shifted into a § 6b reserve. For your decision it is crucial whether your specific transaction and the planned reinvestment meet the requirements. A mere intention to buy a property again at some point is not yet a vetted tax plan.
Describe the commercial transaction correctly
§ 6b EStG regulates, under its conditions, the transfer of hidden reserves for certain fixed assets as well as a reserve. The concept of profit in paragraph 2, among other things, refers to the disposal price after disposal costs and the relevant book value. [ESTG-6b]
Our editorial recommendation: provide the tax adviser with the actual asset allocation and the accounting records. The private historic purchase price or an outstanding bank loan do not simply replace the tax book value. This article does not deal with ordinary private residential sales taxation.
Check the prerequisites before the reinvestment intention
Paragraph 4 contains several conditions, including on profit determination, previous inclusion in fixed assets and traceability in the accounting. Paragraph 1 also assigns the permissible transfer to certain assets. [ESTG-6b]
Therefore, do not only name the desired replacement purchase. The advice first examines the asset actually sold and then the suitable replacement investment. Which special features apply in the specific business or for a foreign investment will be clarified separately; this article does not provide a blanket equivalence for that.
An invented relocation with an uncertain construction project
A business wants to sell its existing building. For a new location there is so far only an idea for a search and a rough construction concept. A contracting party already counts the entire proceeds as freely available construction capital.
The person responsible for the sale initially has the tax variant calculated along with the conditions and possible later burdens. In her decision-making she distinguishes an actually available replacement location from a mere idea. A still unresolved project does not carry the tax relief claimed as certain.
The reserve is an ongoing task
The statute contains deadlines for transfer or dissolution and, under certain conditions, extensions. A dissolution that increases profit without a corresponding transfer can trigger an additional profit surcharge under paragraph 7. A deduction also affects the relevant costs for further depreciation under paragraph 6. [ESTG-6b]
This article does not calculate an individual deadline or any surcharge. Have the actually appropriate timetable and the effect explicitly documented. A reserve is not the same as a finally tax-free sale proceeds.
Decide with a fallback case
Ask the adviser, in addition to the planned reinvestment, for an assessment if the replacement purchase fails or the project changes. Specify the required funding and the outstanding conditions. This way the business can decide on the sale on a sound basis, without incorporating the entire future development as already fulfilled into today’s calculation.