The financially significant question of whether the income from a loan waiver is subject to taxation has arisen for foreign real estate investors since the Annual Tax Act of 2009. The answer is provided through an examination of the specifics of the regulation in Section 49 (1) No. 2 f) of the Income Tax Act (EStG) and the resulting method of profit determination. In this context, questions regarding bookkeeping obligations, the interest barrier, the valuation of real estate at fair value, and double taxation agreements are also addressed. Ultimately, the author rejects the taxation of income from a loan waiver for foreign real estate investors with income according to Section 49 (1) No. 2 f) aa), sentence 2 of the EStG.