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

Hello

Enough questions are asked. Especially in this regard, the tax office is a true octopus.
But the question always is: do I have to answer this question?
It's like with the police who ask you: "may I?" If you say yes, they can do anything without legal authorization.

Steven

Anything is possible with authorities, especially the tax office, but I am quite sure that this equity capital is not about black money. Here, you do not have to cooperate either, because the tax office has to prove to you what they do not like. When acquiring a property that is to be indirectly developed, however, I do have to cooperate, because as already described, it must be clarified whether the property and the contractor are directly connected, since the assessment of the real estate transfer tax depends on that. And also very correctly, as already described in another post, the tax office can do nothing with the property purchase contract alone; rather, it helps them find out what they are now asking you about. To what extent all the questions on the form have to be answered and what exactly is being asked must then be clarified with the office. I also think that this is handled differently from state to state.

We have also received such a letter from the tax office (in BW). The construction costs as well as the entire financing (incl. land) are being queried. I have sent the letter back twice so far, as the purchase price of the land stated therein was not correct. Haven't heard anything since then.

If anything comes again, I still don’t know how I will proceed. Ultimately, you can never say exactly how much equity and how much debt capital were used to finance the land and house construction. For example, how were ancillary costs or the kitchen (which is not asked about in the questionnaire) paid? Equity or debt capital? In business, we like to give the following answer to such questions: "As Money is Not earmarked, this question can Not be answered."

Regards

I filled out the letter over the weekend and sent it by mail yesterday. Let's see (if) anything comes of it.

We have now received the questionnaire three months after the payment of the real estate transfer tax. The information is therefore not relevant for this assessment.

I filled out the letter over the weekend and sent it by mail yesterday. Let's see what comes of it.

Hello SuperAggy,

do you maybe have any info for us on how things proceeded from there?

Regards