Professional real estate traders - Privileged taxation of liquidation gains

When self-employment is discontinued, the sum of the hidden reserves realized in the last two fi-nancial years (liquidation profit) is taxed separately from other income, subject to certain conditions.

In order to make use of this tax privilege, self-employment must be definitively discontinued after the age of 55 or as a result of disability. It is still possible to take up employment at the same time or at a later date.

For a long time, the FTA in particular was of the opinion that a commercial real estate trader could not invoke the privileged status. This is due to the fact that a real estate dealer can never give up his self-employed activity - i.e. neither by selling nor by transferring the real estate to private assets. After all, there is the possibility that after the sale of the last property, properties may be acquired again at a later date.

The case law of the Federal Supreme Court does not support this view. In practice, commercial real estate traders can therefore now also benefit from the privileged taxation of liquidation gains. In addition to claiming the privileged liquidation taxation when selling the last property held as business assets, the privileged taxation can also be applied when transferring properties from business to private assets under certain conditions.

Careful planning of the cessation of self-employment and examination of the specialties of the can-ton in which the property is located are essential in order to benefit optimally from these tax plan-ning instruments.