Depreciation after indirect gift of real estate

Whether a gift of real estate is made directly or indirectly has no effect on the depreciable amount of the donee - depreciation is possible in both cases.

Anyone who inherits real estate or receives it as a gift can continue the depreciations of the testator or donor. This also applies to an indirect gift, in which a sum of money is given away instead of the real estate with the condition that it is used to finance the purchase of the real estate. For the Lower Saxony Fiscal Court, such an indirect gift is not to be treated differently than a direct gift. It is true that the purchase price paid does not represent a real expense for the donee because the money for it does not come from him. However, the purchase is economically attributable to the donor, who also transfers his claim to depreciation to the donee with the gift - whether directly or indirectly.