Which deductions can I claim when renting out my property?
January 1, 2024 | 50,00 EUR | answered by Tina Ullmann
Dear tax advisor,
I recently acquired a property and would like to rent it out to generate additional income. Since I am relatively new to this area, I am unsure about what deductions I can claim when renting out my property.
The property is in good condition and is expected to be rented out quickly. I have already made some investments to make the property more attractive to potential tenants. These investments have led to significant costs, and I would like to know if and to what extent I can deduct them in my tax return.
Furthermore, I am concerned about the tax handling of the rental. I want to make sure that I do everything correctly and do not make any mistakes when calculating the income and expenses. I do not want to have any issues with the tax office, so it is important for me to receive all relevant information about tax deductions for landlords.
Could you please detail which costs and investments I can deduct for renting out my property? Are there any other tax benefits that I, as a landlord, can take advantage of? I would greatly appreciate your help in optimizing my tax situation as a landlord and ensuring that I claim all possible deductions.
Thank you in advance for your assistance.
Best regards,
Benjamin Kieselbach
Dear Mr. Kieselbach,
Thank you for your inquiry regarding the tax deductions and benefits that you can claim as a landlord. As an experienced tax advisor specializing in real estate taxation, I am happy to help you optimize your tax situation and ensure that you take advantage of all possible deductions.
First and foremost, it is important to know that as a landlord, you can deduct various costs and investments for tax purposes. Deductible costs include maintenance and repair expenses, management fees, insurance premiums, interest on loans used to finance the property, property tax, waste disposal fees, and depreciation on the acquisition costs of the property. The costs of renovation work that aims to make the property more attractive to potential tenants can also be claimed as advertising expenses.
The investments you have made to improve and modernize the property can also be deducted for tax purposes. It is important to note that these investments can be depreciated over the useful life of each investment through the so-called "depreciation" (depreciation for wear and tear). This is a tax depreciation option that allows you to claim the costs as tax-deductible over several years.
In addition to the mentioned deductions and depreciations, there may be other tax benefits that you can take advantage of as a landlord. These include, for example, the possibility to claim input tax deductions if you are subject to VAT as a landlord, as well as the ability to offset rental losses against other income.
To ensure that you receive all relevant information on tax deductions for landlords and optimize your tax situation, I recommend that you seek advice from an experienced tax advisor specializing in real estate taxation. I am available for a personal consultation to assist you in optimizing your tax situation.
I hope that this information has been helpful to you and I am available for any further questions you may have.
Kind regards,
Tina Ullmann
