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    Business Taxation Mock Exam FH Aachen

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    sergiorolando94
    This document contains a sample solution to a mock exam in business taxation. It addresses 3 questions regarding personal income tax. Question 1 discusses the basic principle of individual taxation and joint assessment. Question 2 involves determining taxable capital gains from the sale of shares. Question 3 examines whether income generated from janitorial work and renting an apartment would be considered income from business operations or rental/royalties. It concludes that the janitorial work is self-employment income, while renting the apartment is income from rental and royalties. The total income is determined to be EUR 41,000.

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    Business Taxation Mock Exam FH Aachen

    Uploaded by

    sergiorolando94
    25 views3 pages
    This document contains a sample solution to a mock exam in business taxation. It addresses 3 questions regarding personal income tax. Question 1 discusses the basic principle of individual taxation and joint assessment. Question 2 involves determining taxable capital gains from the sale of shares. Question 3 examines whether income generated from janitorial work and renting an apartment would be considered income from business operations or rental/royalties. It concludes that the janitorial work is self-employment income, while renting the apartment is income from rental and royalties. The total income is determined to be EUR 41,000.

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    FH Aachen Germany Business Taxation Course - Mock exam

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    Business Taxation Mock exam FH Aachen

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    This document contains a sample solution to a mock exam in business taxation. It addresses 3 questions regarding personal income tax. Question 1 discusses the basic principle of individual taxation and joint assessment. Question 2 involves determining taxable capital gains from the sale of shares. Question 3 examines whether income generated from janitorial work and renting an apartment would be considered income from business operations or rental/royalties. It concludes that the janitorial work is self-employment income, while renting the apartment is income from rental and royalties. The total income is determined to be EUR 41,000.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    25 views3 pages

    Business Taxation Mock Exam FH Aachen

    Uploaded by

    sergiorolando94
    This document contains a sample solution to a mock exam in business taxation. It addresses 3 questions regarding personal income tax. Question 1 discusses the basic principle of individual taxation and joint assessment. Question 2 involves determining taxable capital gains from the sale of shares. Question 3 examines whether income generated from janitorial work and renting an apartment would be considered income from business operations or rental/royalties. It concludes that the janitorial work is self-employment income, while renting the apartment is income from rental and royalties. The total income is determined to be EUR 41,000.

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    You are on page 1of 3

    [Hier eingeben] Prof. Dr.

    Meike Utzerath
    FH Aachen University of Applied Sciences

    Mock Exam Reading Week


    Sample Solution

    Business Taxation
    Part: Personal income tax (total of 31 points)

    Question 1 (3 points)

    - The basic principle of individual taxation is abandoned. 1


    - The joint assessment is advantageous if the incomes of the spouses/life part-
    ners are of different amounts. The wider the gap the better the joint assess- 2
    ment.

    Question 2 (10 points)

    • Income from capital assets [§ 2 I no. 5 i. c. w.] § 20 II no. 1 EStG (+) be- 1
    cause of disposal of the shares
    • § 20 VIII, no indication that income is attributable to any of the main types of 2
    income
    • Determination of the profit on disposal:
    Income surplus over the income-related expenses,
    2
    [§ 2 II no. 2 EStG i. c. w.] §§ 8, 9 EStG
    • § 20 IV 1 EStG:
    EUR 25,000 [sales price] 1
    - EUR 15,000 [acquisition costs] 1
    - EUR 0 * 1
    = EUR 10,000 [profit on disposal] 1

    * [Expenses that are directly materially related. For capital gains within the
    meaning of § 20 IV EStG, there is an exception to the deduction prohibition

    Page 1 of 3
    Page 2 of 3

    pursuant to § 20 IX EStG. The savers’ lump sum allowance is not deductible.]

    • No exemption according to § 3 EStG apparent 1

    Question 3 (18 points)

    III) Material Tax Liability and Determination of Income

    Janitor
    - [§ 2 I 1 no. 2 i. c. w.] § 15 I 1 no. 1 EStG 1
    - § 15 II 1 EStG income from janitor activities
    o Self-employment (+) acc. to the facts Fred has got 2 employees 1
    o Sustainability (+) acc. to the facts since 15 years 1
    o Intention of realizing profits (+) acc. to the facts EUR 35,000 profit in 01 1
    o Participation in general economic activities (+), providing janitorial ser- 1
    vices to customers
    o No income from self-employment? 1
    § 2 I 1 no. 3 i. c. w. § 18 I EStG (-), janitorial activities are not covered
    by § 18 EStG
    o Not merely asset administration [cf. § 14 AO as well] (+), craftsmen ser- 1
    vices ≠ asset administration

    Conclusion: Fred generated income from business operations. 1

    No indications of tax exemption 1

    [income determination: acc. facts profit = 35,000]

    Private Apartment
    Income from rental and royalties [§ 2 I 1 no. 6 i. c. w.] § 21 I 1 no. 1 EStG, renting
    of parts of buildings (+) apartments 1
    - § 21 III EStG: Assignment to another type of income? 1
    - [§ 2 I 1 no. 2 i. c. w.] § 15 I no. 1 EStG? (-), 2
    [reasoning either]
    because mere asset management
    [or]
    no indication in the facts that the apartment is part of Fred's business assets.
    - [No indication for income within the meaning of other types of income in the
    facts.]

    No indication for tax exemption 1

    Conclusion: the married couple generates income from rental and royalties. 1
    Page 3 of 3

    Surplus determination of income over income-related expenses


    Income [acc. to § 2 II no. 2] i. c. w. §§ 8, 9 EStG 1
    Income within the meaning of § 8 I EStG= rent 1
    [Acc. to the facts, there are no income-related expenses within the meaning of § 9 I
    EStG.]

    Janitor EUR 35,000


    Private Apartment EUR 6,000
    = Sum of Income EUR 41,000 1

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