Field help: Have you closed the business and made a capital gain?

Select "yes" if you have ceased your business operations and made a capital gain.

What is this about?

If you have closed your business and sold business assets, a capital gain may have arisen. This capital gain is recorded in Form G, regardless of whether it is partially tax-free or fully taxable.

What is a capital gain?

If you close your business and sell business assets – such as machinery, vehicles, or property – for more than their book value, this is referred to as a capital gain. The book value is the value these assets have in the accounts at the time of sale.

Under certain conditions, you can also apply an allowance according to § 16 para. 4 EStG to this capital gain to reduce your tax burden. This allowance is mainly aimed at older entrepreneurs who are closing their business after many years.

When should you provide information here?

• If you have closed your business.
• If you have made a profit from the sale of business assets.

Where can you find the information?

You can find the amount of the capital gain in your sales documents or, if necessary, in the profit calculation you prepared when closing the business.

Note: If you have any questions, please contact a tax advisor for individual advice.