The tax office wants to know how we are financing our construction project

I can report from similar cases in practice that remaining doubts or unanswered questions led to taxation of assumed interest income.... although such procedures are rather unusual. If you have nothing to hide, I would settle this in a short phone call with the SB.

The tax office probably wants to find out whether the real estate transfer tax should be calculated only on the land or also on the construction costs. Specifically, whether both can be directly related. This would be the case, for example, if the builder also sold the land.

It seems that the tax office is more interested in finding out whether the real estate transfer tax should be calculated only on the land or also on the house construction costs. Specifically, whether both can be directly related. This would be the case, for example, if the builder also sold the land.

No, the financing is _not_ queried when calculating the real estate transfer tax!

It seems the tax office is more interested in finding out whether the real estate transfer tax should be calculated only on the land or also on the house construction costs.

There are different questionnaires for this at the tax offices in Saxony.

The tax office does not need a questionnaire for this because the tax office receives the purchase contract from the notary, where one can see who is dealing with whom and which purchase price was agreed upon.

It is exactly the same here – the tax office refers to the purchase contract in the present letter, therefore knows the parties involved and the purchase price. The only question for the tax office is where the capital comes from or it must be checked that no undeclared money is being used.

Kind regards
Dirk Grafe

The tax office does not need a questionnaire for this because the tax office receives the purchase contract from the notary, where you can see who is dealing with whom and what purchase price was agreed.

But there you only see the property seller. The tax office does not know the content of the contract for work and services or its date of conclusion. Furthermore, the tax office wanted to know from us how we became aware of the property, whether there were other offers, etc. According to the law and various rulings, it must not yet be certain at the time of the property purchase with whom you are building.