How did we solve the issue?
To prevent this problem, the real estate was transferred to a family holding company (in the form of a family holding GmbH & Co. KG).
The existing GmbH was set up as a subsidiary of the family holding company, and Mr. A. became the managing director of the non-operating parent company. Thus, it was possible to hire a new managing director for the operating subsidiary without triggering the adverse tax consequences of a real estate sale.
This corporate structure ensured that the properties are still closely connected to the company and are owned by the family company. The properties were contributed to the family holding company on the basis of their carrying amounts from the 1940s in order to avoid taxable gains. Furthermore, the properties were contributed to the GmbH & Co. KG by transferring them without consideration, thus avoiding taxable profit for the company.