Farmer bequeaths farm - to son: old farmer retains usufruct right to the property
Quelle: AGRARHEUTE (Glomex)
A farmer transfers his farm to his son with a farm transfer agreement. The farmer retained the gratuitous usufruct right to the transferred property for his lifetime. After his death, the usufruct right passed to the life partner (plaintiff). The son later sold the business. The plaintiff released the buyer from the mortgage liability against payment. However, she did not classify the payment as income from agriculture and forestry, but as a private sales transaction. The tax office and tax court challenged this. The Federal Fiscal Court (BFH) had to decide.