Expenses are deductible from the start of the rental business. The rental activity of an apartment or property is considered to start in principle from the moment when the active activity to get the tenant into the apartment is started. This can be done, for example, by commissioning a rental agency, putting a rental notice in a newspaper and on the Internet, or other similar actions that try to rent an apartment.
The Right Expenses
Expenses are deductible until the rental activity ends. The rental activity ends when the apartment or property is put up for sale or taken into personal use. If the apartment or property is sold as rented, the rental activity ends with respect to the transferred property when the ownership is transferred to the Buyer or at another time agreed between the seller and the Buyer. To calculate estimated taxes you need the best use of the tax calculator.
- In principle, expenses are also deductible for the period when the apartment is empty, for example when the tenant changes or during the renovation, as long as the apartment is used for rental activities. The taxpayer must prove the purpose of renting the apartment, for example by means of rental declarations or brokerage agreements.
- Expenditure arising from leasing activities is deducted in the tax year in which the payment is made (Section 113 TVL). An exception to this is depreciation, which is deducted in accordance with section 114 of the TVL in accordance with the provisions of the EVL, as applicable.
Partial rental of a building, property or Condominium
If only part of a building, property or condominium is leased, only the cost of that leased part can be deducted from the rental income.
For example, if there is a clear separate part of the building for rent, the costs for that part of the building are deducted.
If the cost is to part of the leased and other part used, the cost is divided into a deductible and a non-deductible portion. If the cost is spread evenly over the entire property, building or condominium, the cost can be divided in proportion to the areas of the leased and other parts in use.
A separate 25 m 2 studio apartment is rented out of a building with a total size of 100 m 2. When the studio kitchen cabinet doors are repaired, the repair costs are fully deductible from the rental income. Real estate tax, on the other hand, is levied on the entire property, and only the share of the leased property, ie 25%, is deductible.
Sometimes Renting can also be part of a cohesive whole that is also used by yourself at the same time. Such a situation arises, for example, if another Resident is also taken up as a tenant in an apartment for own use. If the use of the apartment by both Residents is equal, the costs can be divided into living expenses and deductible expenses in proportion to the main figure.