Work aid for the allocation of a total purchase price for a built-up plot (purchase price allocation)

— Work aid and guidance as of June 2022 — In practice, it is often necessary to divide a total purchase price for a built property between the building that is subject to wear and tear and the unusable land. According to the case-law of the Supreme Court, a total purchase price for a built-up land must not be divided according to the so-called residual value method, but according to the ratio of market values or partial values to the land and the building on the other (see BFH judgment of 10 October 2000 IX R 86/97, BStBl II 2001, 183). The supreme tax authorities of the Federal Government and the Länder provide a work aid as an xls file, which, taking into account the highest jurisprudence, makes it possible to either carry out a purchase price allocation itself in a typed procedure or to check the plausibility of an existing purchase price allocation. In addition, a guide for the calculation of the distribution of a land purchase price is available.