Capital gain on the transfer of a property for partial consideration in return for the assumption of a loan

If a property is transferred within ten years of acquisition and the acquirer assumes a loan liability of the transferor, this may be a transaction subject to income tax. This applies even if the assumed loan liability is lower than the market value and acquisition cost of the property. This was decided by the BFH in its ruling of 11.03.2025 (IX R 17/24) and thus once again confirms the so-called strict separation theory for partially paid transfers from private assets - also for transfers for anticipated succession.