Extended reduction in the event of a business lease

A business lease is not detrimental to the reduction if the main business assets are leased out and consist exclusively of own real estate.

Companies that only manage residential property and capital assets can claim the extended reduction for trade tax. The Federal Fiscal Court has confirmed that the extended reduction can also be considered in the case of a business lease: A business lease is not detrimental to the reduction if the essential operating assets that characterize the business are leased out and it is exclusively the company's own developed or undeveloped property. The co-letting of building components that are part of the common property is a necessary part of the transfer of own real estate and therefore not detrimental to the reduction.