How can I as a landlord declare my rental income in the income tax return?
July 26, 2022 | 50,00 EUR | answered by Tatiana Herrmann
Dear tax advisor,
my name is Maria Zimmermann and I am a landlord of an apartment. In the past, I have always reported my rental income in Annex V of my income tax return. However, I am unsure if I am doing everything correctly and if there may be other ways to accurately record my rental income for tax purposes.
Currently, I do not keep detailed accounting of my rental income, but only have an overview of my tenants' payments. I wonder if it is necessary to keep proper accounting records and how I should proceed. Additionally, I am concerned about whether I can deduct certain expenses, such as repair costs or management fees, from my rental income and how to account for them in the income tax return.
Could you please explain to me how I can correctly report my rental income as a landlord in the income tax return? Are there specific forms that I need to use and what information is required? Furthermore, I am interested in knowing which expenses I can deduct for tax purposes and how they should be accounted for in the income tax return.
Thank you in advance for your help and support.
Sincerely,
Maria Zimmermann
Dear Mrs. Zimmermann,
Thank you for your inquiry regarding the tax treatment of your rental income as a landlord. I am happy to assist you in correctly reporting your rental income in your income tax return.
First and foremost, it is important that you accurately record your rental income in Annex V of your income tax return. In Annex V, you must indicate the amount of your rental income, as well as any expenses related to the rental activity, known as deductible expenses. Deductible expenses are all costs associated with the rental activity that can be claimed for tax purposes.
To properly record your rental income, I recommend keeping detailed records of your income and expenses. You should collect all receipts and invoices related to the rental activity, such as repair costs, management fees, insurance, property tax, loan interest, etc. These expenses can then be claimed as deductible expenses and deducted from your rental income to determine your taxable income.
To report your rental income and deductible expenses in your income tax return, you will need Annex V, where you can provide all relevant information. Additionally, you should carefully keep all receipts and proof of your income and expenses to be able to present them in case of an audit by the tax authorities.
I therefore recommend keeping proper records of your rental income and documenting all relevant expenses to fulfill your tax obligations. If you have any further questions or need assistance in preparing your income tax return, please do not hesitate to contact me.
Best regards,
Tatiana Herrmann
