Mortgage Gain Tax
The mortgage profit tax (also known as HGA for short) was a tax under public law that was levied in the Federal Republic of Germany on the basis of the Burden Equalization Act of August 14, 1952 .
The mortgage profit levy was subject to debtor profits from the devaluation of liabilities that were secured by mortgage liens as part of the currency reform of 1948 , as well as of mortgage liens that were not used to secure personal liabilities. Excepted were liabilities that were subject to the loan profit levy , as well as liabilities of financial institutions, insurance companies, building societies and some other debtor groups. On the other hand, the levy was also subject to liabilities that were not secured by mortgages if the owed company was not subject to the credit profit levy, but it was a continuing debt within the meaning of trade tax law .
Subject to some reduction regulations, the tax liability was the amount by which the nominal amount of the liability in Reichsmark exceeded the conversion amount in DM. The most important reduction option was the proportional reduction of war damage to the contaminated property.
The conversion profit flowed completely into the state treasury in the form of burden sharing, since the debtor repaid the full amount originally borrowed in Reichsmark in DM, but the creditor only received the amount according to the conversion rate of Reichsmark in DM.
Example: The debtor repaid 1,000 RM as 1,000 DM, of which 100 DM went to the creditor and 900 DM to the state treasury.
The tax debt was to be repaid in installments including interest.