.- Property Transfer Tax (Grunderwerbsteuer): 3.5-6.5%, depending on the region- Land Registration Fees: Approximately 0.5-1.5%.- Realtor Fees: As mentioned, these range from 3-7% of the purchase price, plus VAT.Benefits for Service Members- Equity Building: Owning property builds equity over time, providing long-term financial security.- Strong Rental Potential: If reassigned, you can rent the property out in Germany high-demand rental market.- Tax Advantages: Germany offers tax deductions for property owners, which can help offset some costs.Key TakeawaysService members have a unique opportunity to buy property in Germany with minimal upfront costs.

So if you have the property for a total of 10 years, moved in at year 8, little value or tax advantage.

Despite the equity We also want to take advantage of tax advantages we did stay in the property for 2 years !  

Then rent the bigger home out using a property manager, allowing her to possibly cash flow and maintain that asset and let it continue to grow in value.Encourage her to consult with a CPA or tax attorney to explore the best strategy tailored to her situation.

If 1031 is to be implemented it must be done on the property level.2. 1031 generally does not apply to IRAs since they are tax-exempt. 3.

Since the trust is a disregarded entity, the benefit is bypassing  probate, not tax issues or liability concerns. 

Remember you are exempt from excise franchise tax if you file an exempt form.This post does not create a CPA-Client relationship.

Tax structuring and LLC advice you can get for a paid fee too.

Repairs made while the property is your primary residence are not deductible, but improvements can increase your cost basis, reducing future capital gains tax when you sell.

Plus it's ordinary income so it's a nice tax hit.