Due to the decision of the Federal Finance Court of July 22, 2015 (II R 12/14, Federal Finanz Gazette 2006, pt. II, p. 230), the deduction of the equalization of accrued gains according to § 10 para. 6 Inheritance and Gift Tax Act (IGTA) claimed by the surviving spouse (§ 5 IGTA) is not limited anymore insofar as it relates to tax-exempt economic assets.
Note
The decision of the Federal Finance Court of July 22, 2015 regarding the full deductibility of the equalization of accrued gains claimed by the surviving spouse was finally accepted by the fiscal authorities.
For more details in regard to limited deductible debts and encumbrances see Koeniger, The German Inheritance and Gift Tax, 2017, p. 88 et seqq., in regard to the equalization of accrued gains claimed by the surviving spouse see p. 44 et seqq.