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

Not really. There has been no reaction from FA so far.

Hi SuperAggy,

my wife and I (different last names) also bought a plot of land in EB in February. We have already paid the property transfer tax 4-6 weeks ago. On Saturday, we also received exactly this letter. What did you enter? Did you provide an exact loan amount + interest + term + bank company? Do you have one large loan for the house + land, like us, or two separate ones? I sent the letter to a tax expert. He said that it probably concerns two things: 1) Detection of undeclared money 2) Construction of an immediate connection between the land purchase and house construction.

Have you received any further letters? How long ago did you fill out and send the letter?

Best regards Ronny

There is a lot of scaremongering going on here and the behavior of the office is overreaching. Everyone is allowed to have two hundred thousand in cash at home. That is legal. Therefore, everyone is even allowed to purchase a property in cash, just not without a notary. They should first prove that this is black money. Cash doesn’t earn interest, so there is nothing to declare in Anlage KAP. That’s all on that matter. The dangerous thing is with the loans. The tax office knows if you purchase property Laubenweg two from developer Wohnglück that this belonged to developer Wohnglück. ..... I strongly advise against building with the one who sold you the property. That is then real estate transfer tax on everything. Karsten

No, we bought the property from the city of Eilenburg. This is also stated in the notary contract. That means the property seller (city) is not connected to the private construction company in our case. However, we only took out one large loan for the property and house construction. 07/16 - we proved that we reserved it 09/16 - submitted our written purchase request to the city 10/16 - it was positively approved by the city council Beginning 12/16 - received the draft notary contract Mid 12/16 - signed the construction contract End 02/17 - signed the notary contract 04/17 - entry in the land register Only after that did we submit the building application. I will first take out good legal expenses insurance now. Regards Ronny

Disputes related to a new construction are excluded in almost all RS.

What do you mean by that? What do you think should be indicated? The question is whether the tax office is entitled to request information about the loan amount with interest, duration, and at which financial institution, or whether they are just messing around.