Apartment sale, now the tax office is knocking

So I took a look at the documents, but I don't quite understand them:

The subject value was 60,000 euros

From the beginning of 05/2006 there is a letter and preliminary contract regarding a gift. With the note of a not insignificant gift tax.

From the end of 06/2006 a contract about a sale. This is also signed by all parties involved.

So it was probably a sale in 2006 and not a gift.

The gift would not be below the exemption amount. It’s about the re-transfer from the daughter to the parents. Exemption amount 20k!

No offense, but we are obviously speculating here and whether it was gifted or bought are essential pieces of information. Why is everything so vague? Don’t the parties involved know what they did? Drawing up a purchase contract and then symbolically transferring one euro will also make the tax officers grin ;) The structure would be that the parents buy an apartment for the daughter, which legally belongs to the daughter. The installments are paid by the parents. Now the ownership is to be transferred back from the daughter to the parents, for which a purchase contract is drawn up. The parents would now have to pay the daughter a reasonable purchase price. Thus, the parents would have basically paid for the apartment twice. That would be madness, wouldn’t it?!

Why is all of this so vague?

I have been asking myself that as an interested reader since the very first post. If it were my problem, I would simply list all the facts straightforwardly. Chronologically, who signed which contract with whom and when, and what was paid.

This is what I suspected in #7. It is not a gift, but a purchase, since the installments are credited. I don’t think we need to speculate any further. The hopefully complete information and documents are with the tax advisor, and he can certainly easily dissolve the construct.

Well, the daughter hadn’t really taken care of it, and the parents didn’t really have a plan either. A notary was commissioned to take care of everything. Ten years have passed since then. My wife still has copies, I’ll try to upload the interesting parts shortly.

So here are 3 pages from the notarized contract.

1) Daughter
2) Mother
3) Father