Separate garden plot cannot be used by the owner

If part of a large, owner-occupied residential property is separated and sold, the tax exemption for speculative gains on owner-occupied property does not apply.

Anyone who has a large open space next to their owner-occupied house can count themselves lucky. As long as the open space is connected to the building and is therefore also used for your own residential purposes, for example as a garden, the tax exemption for a speculative gain also applies if the property is sold within the speculation period. However, if part of the open space or the entire open space is separated off so that it can be sold separately from the building, the uniform usage and functional connection that is necessary for the tax exemption no longer applies. In any case, the Federal Fiscal Court is of the opinion that an undeveloped plot of land cannot be inhabited due to the lack of a building on it and therefore cannot fall under the tax exemption, even if it was still part of the owner-occupied property until shortly before the sale.