Until 1998 this was the name for the private sales transactions. The profits from the sale of certain legally stipulated private assets were recorded for tax purposes if they were sold within the speculation period (Section 23 EStG as amended until December 31, 1998). The term “speculative transactions” did not allow any conclusions to be drawn about the seller's motivation.
Rather, the sale within the speculation period was sufficient without the need to speculate. The speculation period for securities was six months and for land and leasehold rights two years. The prerequisite was the acquisition of the asset against payment and the sale to a third party for a fee.
In order to avoid the term “speculation”, the term “private sales transactions” was introduced with the Tax Relief Act 1999/2000/2002. At the same time, the deadlines were extended. For the VZ 1997 and 1998, the Federal Constitutional Court ruled that Section 23 of the Income Tax Act is partly unconstitutional because the uniform collection of the tax is not guaranteed.