How can I save taxes as a landlord?
June 25, 2023 | 50,00 EUR | answered by Anna Richter
Dear tax lawyer,
my name is Emil Waldmüller and I am the landlord of several properties. In recent years, I have had to pay more and more taxes and I am wondering if there are ways to reduce these costs. Currently, I pay income tax on rental income as well as property tax and, if applicable, solidarity surcharge.
I am concerned that the increasing tax burdens are significantly reducing my income and I would like to know if there are legal ways to save taxes as a landlord. I have tried to inform myself on the internet, but the information is often contradictory and difficult to understand.
Can you provide me with specific tips and advice on how I can reduce my tax burden as a landlord? Are there specific depreciation options or tax benefits that I have not yet taken advantage of?
I am willing to delve into the topic intensively and possibly make changes to my rental model in order to save taxes, but I urgently need professional support and advice. I would be very grateful if you could help me and provide me with specific recommendations for action.
Thank you in advance for your help.
Sincerely,
Emil Waldmüller
Dear Mr. Waldmüller,
Thank you for your inquiry regarding ways to reduce your tax burden as a landlord of multiple properties. As a tax attorney, I can provide you with some tips and advice that may help you optimize your tax obligations.
One way to save taxes as a landlord is to take advantage of depreciation options. As a landlord, you can claim the acquisition and production costs of your properties through what is called linear depreciation for tax purposes. This means that you spread the costs evenly over a certain period of time based on the years of useful life, thereby reducing your tax burden. Additionally, you can also deduct certain renovation and modernization costs as business expenses, thus reducing your tax liability.
Furthermore, there are tax benefits that you can take advantage of as a landlord. For example, under certain conditions, you can benefit from the small business rule if your rental income is below a certain amount. You can also claim special deductions if you rent out residential space as part of housing promotion.
It is important to carefully review and potentially adjust all relevant tax regulations and options in detail to optimize your tax burden. I recommend consulting a tax advisor who can assist you with the tax planning of your rental activities. A professional tax advisor can provide you with individual recommendations and work with you to develop a customized tax strategy.
I hope this information is helpful to you and I am available for any further questions. Thank you for your trust and I wish you success in optimizing your tax burden as a landlord.
Sincerely,
Anna Richter
Tax Attorney
