Inheritance tax benefit for an adjoining dwelling

The inheritance tax exemption for a family home also includes an adjoining apartment that is connected to the apartment already used by the owner.

The inheritance tax exemption for the acquisition of an owner-occupied family home also applies to the acquisition of an apartment that is spatially adjacent to an already owner-occupied apartment if, after the acquisition, both apartments are combined to form a single owner-occupied apartment. With regard to the limitation of living space in the case of tax exemption to an apartment of a maximum of 200 m², it is solely a matter of the size of the inherited apartment not exceeding 200 m². Whether the total living space of the apartment created after connection exceeds 200 m² is not decisive. For the Federal Fiscal Court, this follows from the wording of the law, which alone limits the size of the acquired family home. However, the decisive factor is that the additionally acquired dwelling is immediately intended for owner-occupation. The delay that occurs due to the elimination of a serious defect does not prevent this if the heir appropriately promotes the progress of construction.