Tax on defaulted private loan claim
The Financial Court of Düsseldorf has decided that the default of a private loan claim can be taken into account for tax purposes.
The parties involved disputed the eligibility of a defaulted private loan claim.
In August 2010, the plaintiff granted a private loan of around EUR 24,000 with an interest rate of 5%. As of August 2011, the borrower no longer made any repayment payments.
Insolvency proceedings were opened against the borrower's assets in 2012. The plaintiff then filed the remaining claim of around 19,000 euros in the insolvency table - ultimately without success.
In October 2012, the insolvency administrator notified the local court of the
insolvency's inadequacy. The insolvency proceedings were finally discontinued in 2016. The plaintiffs claimed the loss from the loan claim in their income tax return for 2012.
However, the defendant tax office initially took the view that the loss on the loan could not be taken into account in the income from capital assets. The Federal Financial Court (BFH) opposed this in the subsequent appeal proceedings and referred the legal dispute back to the Finance Court (BFH, judgment of 24 October 2017 - VIII R 13/15).
In the second instance, the Financial Court Düsseldorf has now upheld the action and decided that the loss of the capital claim can already be taken into account in the year of dispute 2012.
In the opinion of the fiscal court, this results from the special circumstances of the dispute. With the notification of the insolvency inadequacy in 2012, it was clear that the insolvency creditors would no longer receive any repayments in the estimation of the insolvency administrator. The further progress of the proceedings and any changes in the financial situation up to the conclusion of the insolvency proceedings were not important.
The amount of the loss of receivables (approximately 19,000 euros) was not disputed between the parties involved.
Source: Financial Court Düsseldorf
- Legal Tech Act
- Invalidity of the termination of a tenancy agreement
- Influencer means advertising ?
- Employee must prove illness
- Revocation of a car loan agreement
- Liability of a subsidiary for infringement of competition law?
- Time limitation of an employment
- Price increases for new car
- Termination due to reading and disclosure of data
- Termination because of threats against a supervisor
- Proof of e-mail receipt.
- Termination of Leasing Contract
- EU sanctions targeting Russian citizens.
- Transparency register for all companies
- Insolvency law: indebtedness pursuant to section 19 (2) sentence 1 InsO
- The EU's Russia sanctions
- Payment for licence plate advertising is remuneration
- Interest on tax demands and refunds at 6% p.a. unconstitutional
- Data owned by employer
- Weakening of tenants' rights
- Right of withdrawal for brokerage contracts
- BFH, ruling of 23 March 2016, IV R 9/14: Investment deduction amount
- Cartel damage
- Right abuse
- Setting a deadline
- Protection of third parties
- Internet sales platform
- Bonus payments
- Formal requirements in general terms and conditions
- Termination of a management employment
- No cosmetic repairs at the apartment despite "renovation agreement"
- Income tax return due to loan default
- ECJ ruling on copyright infrigements on Youtube
- Gift invalid without notarial certification
- Minimum subsistence Germany 2019-2020
- revocability of employment termination agreements
- Cover under legal expenses insurance
- Termination without notice
- Labour law: leave
- Immigration of qualified staff
- Unpaid leave
- Tax law: liability of a foreign company in germany
- Custom law ruling
- Labour law: compensation adjustment for lawyer fees
- Termination without notice
- Tenancy law
- Immediate notice of dismissal
- Damages in case of violation of a jurisdiction agreement
- Corona quarantine: legal aspects
- No termination without notice
- Labour law decisions around Corona
- Dismissal due to Covid 19 quarantine invalid