Critical examination of the case law on commercial property dealers
The courts have recently had the opportunity to rule on the issue of commercial property dealers. It has become apparent that the usual criteria, which establish professionalism, are weighted differently. The following paper aims to provide an overview, to describe the weighting of the individual criteria in the case law and to point out possible contradictions. Above all, the paper shows that it is hardly possible to determine which criteria make a private person a professional real estate trader.
Change in practice: Federal Court overturns practice on "economic new construction".
Since the amendment of Art. 32 (2) sentence 1 DBG, costs for the maintenance of newly acquired real estate are also tax deductible as maintenance costs. With this, the legislator abolished the Dumont practice. Instead, the Federal Supreme Court created the legal concept of "economic new construction" for renovation costs of newly acquired real estate. If an "economic new construction" exists, all costs are not deductible as maintenance costs, regardless of their character. The Federal Supreme Court has now - in its ruling of February 23, 2023 - reviewed its long-standing practice and changed it.
Collective investment schemes with real estate: Selected issues in the real estate transfer tax
Recently, various questions have arisen in practice in connection with the transfer tax for collective investment schemes with direct real estate holdings. This article examines whether the transfer of real estate from one fund management company to another and the transfer of real estate from one collective investment scheme to another triggers the transfer tax.
Charitable foundations - explosive tax law issues
Legal entities that meet the respective requirements of Art. 56 lit. e, g and h of the Federal Law on Direct Federal Tax (DBG) generally benefit from a subjective tax exemption. If legal entities are subjectively tax-exempt due to the pursuit of charitable purposes, according to Art. 56 lit. g DBG, the acquisition and management of "significant capital investments in companies" are only permitted under restrictive conditions. The Federal Supreme Court recently had to assess the question under which circumstances the holding of a significant equity interest in an operating company by a charitable foundation precludes a subjective tax exemption.
Canton of Zurich - Adjustment of the fact sheets on the deduction of property maintenance costs and energy-saving measures and updating of the Zurich tax booklet
Since the 2020 tax period, there is the new deductibility of deconstruction costs with regard to a replacement new building (section 30 para. 2 StG) and the transferability of expenses for investments that serve to save energy and protect the environment, as well as deconstruction costs with regard to a replacement new building (section 30 para. 2bis StG). These costs are deductible in the two subsequent tax periods insofar as they could not be fully taken into account for tax purposes in the current tax period. The two information sheets were adapted for this purpose:
Circular: List of cantons with different imputed rental values for cantonal taxes and direct federal tax as of tax period 2018
On 9 July 2019, the Federal Tax Administration (FTA) published a circular containing a list of cantons with different imputed rental values for cantonal taxes and direct federal tax as of the 2018 tax period.
Residential property taxation: discussion of the preliminary draft commenced
The Commission for Economic Affairs and Taxation of the Council of States (WAK-S) has accepted without opposition the preliminary draft on the system change in the taxation of home ownership (17,400) and has largely conducted the detailed consultation.
Canton of Zurich: Real estate gains tax
Real estate gains of Zurich companies are now also fully subject to real estate gains tax even if these companies report losses from their business activities in the Canton of Zurich. In contrast, companies outside the canton can offset their business losses against gains on real estate in the canton of Zurich. This unequal treatment is to be eliminated. According to the proposal, on which Zurich voters will vote on 10 June 2018, Zurich companies will also be able to deduct the business loss from the property gains they have made in the Canton of Zurich. This offsetting of business loss against property gain reduces the taxable property gain and thus the property gains tax due. If the business loss is greater than the real estate profit, the real estate profit tax is not applicable at all.
Land held as private property
Workshop by Toni Hess, Daniel Bader, Rachid Ghazi and Hanna Brozzo on the occasion of the ISIS) seminar on September 12/13, 2022, entitled "Land in Private Property".
Taxation of real estate trading, distinction from private asset management
Workshop by Stephanie Eichenberger and Reto Fürer on the occasion of the ISIS) seminar on September 12/13, 2022 entitled "Taxation of Real Estate Trading, Distinction from Private Asset Management".
Intercantonal and cross-border real estate transactions
Workshop by Laetitia Fracheboud and Olivier Margraf on the occasion of the ISIS) seminar of 12/13 September 2022 entitled "Intercantonal and cross-border land transactions".