Facts
The appellant [X.] is the owner of various properties in the city of [A.] and its surroundings. In 2006, he sold four properties in [B.] and applied for a deferral of the real estate capital gains tax due to the replacement of business-related fixed assets. However, the Commission for Real Estate Taxes of the city of [B.] assessed a real estate capital gain and a real estate capital gains tax.
The appellant filed an appeal against the decision on the objection and later against the decision of the Administrative Court of the Canton of Zurich, which dismissed the appeal. The appellant argued that the properties belonged to the business-related fixed assets and that the tax deferral conditions were met.
Considerations
The Federal Supreme Court examined the appeal and came to the conclusion that the lower court had not sufficiently examined the question of whether a business existed. The Federal Supreme Court found that the appellant had been treated as a real estate trader in previous years and that the properties were originally qualified as fixed assets.
However, the Federal Supreme Court also…