(2023) How do I apply for the capital gains tax allowance (section 16 (4) EStG)?

If you are aged 55 or over or are permanently unable to work, you can apply for a capital gains allowance. This is provided it is the first time since 1996 (§ 16 para. 4 EStG).

It may be the case that a portion of the capital gain is subject to tax at only 60% under the partial income procedure. This applies if the business assets sold included shares in corporations. This portion cannot additionally benefit from the capital gains allowance. Therefore, the portion that is 60% taxable must be deducted from the capital gain and entered in line 16.