GmbH & Co. KG is a special legal form. Compared to the normal GmbH, a GmbH & Co. KG is relatively rare. But especially in real estate tax law, this legal form offers considerable advantages. This article briefly explains the 3 most important design options for real estate assets.

For partnerships, there are special tax exemptions in real estate tax law, to which corporations do not have access. This can therefore already be used in the context of the acquisition of real estate.

2. Avoidance of business tax: Application for extended reduction

Basically, a GmbH & Co. KG – as well as corporations – is subject to trade tax. Another disadvantage is that after 10 years, in principle, no tax-free sale of the property is possible. However, if the company only manages its own real estate (real estate) and has maximum capital assets, then the extended real estate reduction provided for in real estate tax law can be availed in accordance with § 9 no. 1 sentence 2 GewStG, so that an exemption from trade tax is granted.

Real estate tax law: commercial minting and de-minting

A social trick can be used to avoid commercial embossing. The resulting “commercially distincted GmbH & Co. KG” is then exempt from trade tax. In addition, it can sell its property free of income tax after 10 years. This allows it to use the same tax advantages in real estate tax law as in a real estate sale from private assets.