Loss carryforward expires in the case of anticipated succession
In contrast to an inheritance, an anticipated succession may result in the previously established loss carryforward being forfeited.
If more than 50 % of the subscribed capital is transferred to a purchaser within five years, the loss carryforward determined to date expires. According to the Münster Fiscal Court, this expiry of the loss carryforward also applies in the case of anticipated succession. Only acquisitions by inheritance or inheritance settlement are explicitly excluded. Although the tax authorities have also excluded anticipated succession in an administrative instruction, this exception is not contained in the law, according to the court.