Transfer to relatives does not prevent speculative gain

The free transfer of a property to parents or parents-in-law does not count as personal use and therefore does not prevent a taxable speculative gain from arising.

The ten-year speculation period for real estate does not apply if the house or apartment was used for own residential purposes. The Federal Fiscal Court has now clarified that the free transfer of the property to the mother or mother-in-law does not fulfill this requirement. In any case, it is necessary that the taxpayer also lives in the property themselves, whereby joint use with relatives or a third party is harmless, but an exclusive transfer to others can lead to a speculative gain if the speculation period has not yet expired.