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Real estate and communities of heirs – This must be observed
Private properties are often bequeathed to siblings. The siblings sell the property or plan to build something larger on the site, such as a block of flats.
There is a lot to consider from a tax perspective:
- Demolition costs are tax-deductible.
- Properties that were categorised as private assets before the inheritance remain so even after the death of the testator.
- If the heirs sell the property as such, this qualifies as a private sale.
- If the heirs start building an apartment block and plan to sell condominiums, this can be interpreted as commercial property trading.