Proportionate purchase price for garden is not part of the abandonment gain

The lavishly landscaped garden of a house used partly for business purposes is not automatically included pro rata in the profit from the business carried out in the house.

The proportionate purchase price attributable to the garden of a mixed-use property does not count towards the discontinued profit of the business carried out in the building. With this decision, the Münster tax court ruled in favor of the heirs of an architect who had elaborately designed his garden. When the property was sold, a corresponding separate purchase price share was therefore shown for the garden, which the tax office also wanted to add to the abandonment profit for the architect's office in the amount of the proportion of the living space in the house used for business purposes. The tax court, however, was of the opinion that the garden was to be regarded as an independent asset for tax purposes, even if it formed a unit with the land and the building under civil law. Furthermore, the garden had no connection to the office space on the top floor and was not accessible from there and was used exclusively for private purposes.