Tax & Legal

Categories: All (3 found)

1. 19.08.2025

   Partial write- down of partner loan receivable upon terminat ...

   The fact that a commercial limited partnership (KG) receives income ranking as business income because of the so called „tainting effect“ does not preclude the partial write-off of a worthless loan owed to its partner if the principles of corresponding accounting between partnership and the partners no longer apply because of the discontinuation (cessation) of the business of the KG. Unlike the tax court of first instance, the Supreme Tax Court allowed the loss from the partial write-down to be recognized already at the time of the cessation of the business activities.

   Categories: Supreme Tax Court cases

   Keywords: write-down, tainted income
2. 30.01.2024

   Update: “Tainting effect” of trading activity for trade tax ...

   In a recent decision the Supreme Tax Court held that losses from a genuine business activity of an asset-management civil-law partnership (GbR) can lead to the reclassification of the otherwise asset-managing (non-business) activity as trading income if the so-called de minimis limit is exceeded.

   Categories: Supreme Tax Court cases

   Keywords: Asset & Wealth Management, trading incom ...
3. 01.08.2019

   Restrictions to the “tainting effect” of trading partnership ...

   For income tax purposes, income of a partnership from leasing and letting or from capital assets is to be reclassified as trading income where the partnership also receives a negligible amount of income from a participation in a trading partnership; however, such “tainted” income is not subject to trade tax.

   Categories: Supreme Tax Court cases

   Keywords: partnership income, trade tax, tainted i ...