ᐅ Is it common to buy land and pay part of the price in cash?
Created on: 14 Feb 2018 12:53
V
Vanyleon87
Hello,
I’m not sure if this is the right place, but we need some help. Here’s the situation: we found a piece of land privately where we want to build. However, the owner wants to do it so that only part of the amount is stated in the official purchase contract, and we would pay the rest in cash. (She mentioned maybe in an envelope in the notary’s waiting room, so she doesn’t have to pay tax on the full amount.)
We are very uncertain and find it strange that she wants to handle it this way. What do you think about that? We’re not sure if this could be considered tax evasion, which of course is completely unacceptable!
Thank you very much for your help.
I’m not sure if this is the right place, but we need some help. Here’s the situation: we found a piece of land privately where we want to build. However, the owner wants to do it so that only part of the amount is stated in the official purchase contract, and we would pay the rest in cash. (She mentioned maybe in an envelope in the notary’s waiting room, so she doesn’t have to pay tax on the full amount.)
We are very uncertain and find it strange that she wants to handle it this way. What do you think about that? We’re not sure if this could be considered tax evasion, which of course is completely unacceptable!
Thank you very much for your help.
ypg schrieb:
It would actually be a completely legal way to acquire this/a property very cheaply and to get one over on the lady.
Later, she can’t really complain – everything was done legally through the notary.
(...)
So: Buy! Buy at an official bargain price with a notary of your choice The "tip" only suffers from the flaw that the deal at the "bargain price" would initially be void – even if notarized by the friendly notary (who, of course, doesn’t know this at the time), see above #16.
Furthermore, it is also not a legal method....
C
chand198615 Feb 2018 09:08Otus11 schrieb:
By the way, this is also not a legal method....Thank goodness
D
Deliverer15 Feb 2018 09:25This is so exciting!!!!!!1elf
Can I buy the film rights? Cash payment welcome...
Can I buy the film rights? Cash payment welcome...
I want to bring this down to earth a bit. One might think the Cosa Nostra is involved here. In my experience, at least in Schleswig-Holstein, paying "in cash" is a very common, I wouldn't say normal, but definitely not unusual payment method, often with an envelope in the waiting room. Everyone here knows about this—the notaries, the authorities—only as long as everyone smiles and stays silent, the office won’t intervene if the notarized transaction isn’t unusually low in value. Because a reasonable suspicion is required to conduct a serious investigation. They also don’t have enough staff for that. Yes, in this sense, the country loses real estate transfer tax and income tax. That’s the reality.
From a broader perspective, however, you have to live with it if you don’t want a fully surveilled citizen. Freedom always comes with some loss of fairness and order. Here, we are really talking about fundamental attitudes toward life.
So, conclusion: if it already makes you uncomfortable and you bring it up here, then stay away from it. Those who go through with it usually don’t discuss it here, and despite all moralists, it simply happens hundreds of times this way. Karsten
From a broader perspective, however, you have to live with it if you don’t want a fully surveilled citizen. Freedom always comes with some loss of fairness and order. Here, we are really talking about fundamental attitudes toward life.
So, conclusion: if it already makes you uncomfortable and you bring it up here, then stay away from it. Those who go through with it usually don’t discuss it here, and despite all moralists, it simply happens hundreds of times this way. Karsten
C
chand198615 Feb 2018 09:51Nordlys schrieb:
One might think this is the Cosa Nostra showing up.No, I didn’t think that.
Nordlys schrieb:
Everyone here knows that, the notaries, the authorities – but only as long as everyone smiles and stays silent, [...]But now I do.
So it’s not unusual in at least one specific region in Germany to break laws in a certain way. You can’t prevent everything anyway, because of freedom and all. Freedom comes at a price. Sometimes you just look the other way when someone exercises it against the law.
Our taxes are wasted anyway. For example, paying teachers at schools who still fail the next generation. You get better long-term ROI from the house after all...
Why is a moralizing finger pointed everywhere when someone points out that it is often the same people who evade taxes (even while sometimes being paid through such means) but complain about the lack or failures of public services? Doesn’t add up, cognitive dissonance.
But that’s how freedom is: it also frees you to admit what can’t be applied as a general principle. I don’t want to take that away from anyone. I just don’t have to understand it.
You want to move away from the suspicion that this is just about mafia dealings and argue with everyday cases of undeclared money and side agreements? That’s “wow”!
That’s exactly what characterizes mafia-like and corrupt networks.
Otherwise, I don’t think either ypg or I seriously believed that the original poster would actually cheat the seller. That would require a level of criminal energy and audacity that few here are likely to possess.
But the idea is simply amusing and brings a smile.
That’s exactly what characterizes mafia-like and corrupt networks.
Otherwise, I don’t think either ypg or I seriously believed that the original poster would actually cheat the seller. That would require a level of criminal energy and audacity that few here are likely to possess.
But the idea is simply amusing and brings a smile.