Extended reduction does not apply to mixed-use buildings

Even with a minor share of commercially used space, mixed-use buildings are detrimental to the extended reduction for trade tax.

The extended reduction for trade tax only applies to companies that exclusively manage capital assets and residential buildings. The Federal Fiscal Court has therefore denied the extended reduction to a company that also manages buildings to a subordinate extent, which also contain isolated commercially used units. The Federal Fiscal Court does not see an unplanned loophole in the law in the restriction to purely residential buildings. Such mixed-use buildings are thus detrimental to the extended reduction even in the case of a minor share of commercially used space.