In the case of the contribution and transfer of business assets, it is possible in certain cases to submit an application for the continuation of the book value to the tax office. In addition, the Private Assets Act orders an “automatic” continuation of the “book values” if the items are transferred to another person free of charge. We'll give you an overview.
1. The continuation of book value under income tax law
The Income Tax Act (EStG) orders the continuation of book value for certain cases. It is mandatory, i.e. without the request of the taxable person. Relevant in practice are in particular § 6 paragraph 3 and paragraph 5 EStG.
1.1. Transfer of an entire business according to § 6 (3) EStG
A compulsory continuation of book value applies according to § 6 (3) EStG if one of the following companies or parts of the company is transferred to another person free of charge:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.