Contact us

Transfer of part of a property for use free of charge is considered personal use

Transfer of part of a property for use free of charge is considered personal use

If, in the event of separation or divorce, a property or part of a property is transferred to the receiving spouse for use free of charge, this is still considered personal use for tax purposes. The spouse who transfers the property must continue to pay tax in full on the imputed rental value of the part transferred.

 

The free transfer of the property is considered a maintenance contribution for tax purposes. The provider can deduct this amount from other alimony, while the recipient must pay tax on the corresponding amount.