What tax benefits do I have as the landlord of a property?
July 25, 2023 | 50,00 EUR | answered by Lilli Reuter
Dear lawyer,
my name is Hilde Evers and I have been a proud owner of a rented property for several years. In recent months, I have been extensively studying the topic of taxes as I would like to learn more about the tax benefits of being a landlord.
The current situation is as follows: I rent out an apartment in my house and generate regular rental income as a result. Now I am wondering if there are ways to deduct these income tax and what benefits could arise from it.
My concerns mainly lie in the fact that I am not sure which expenses I can deduct for tax purposes and how best to proceed to take advantage of tax benefits. I am also interested in whether there are certain grants or discounts for landlords that I may have overlooked so far.
Therefore, my question to you is: What tax benefits do I have as a landlord of a property and how can I best take advantage of them? Are there specific expenses that I can deduct for tax purposes, and what grants or discounts are available to me as a landlord?
I thank you in advance for your support and look forward to your expert advice.
Sincerely,
Hilde Evers
Dear Mrs. Evers,
Thank you for your inquiry and your interest in the tax aspects of renting out a property. As a tax lawyer, I am happy to assist you with your questions.
As a landlord of a property, you do indeed have various tax advantages that you can use to minimize your tax burden. Firstly, as a landlord, you can deduct advertising expenses for tax purposes. This includes, for example, the interest on loans taken out for the purchase or renovation of the property, as well as the costs of repairs, maintenance, management, insurance, or depreciation of the building. These costs reduce your taxable rental income and ultimately your tax burden.
Furthermore, landlords have the option to claim linear depreciation. This is usually 2% per year of the acquisition or production value for residential buildings. This allows you to deduct the acquisition or production costs over a period of 50 years for tax purposes.
In addition, there are also certain grants and benefits available to landlords. For example, energy-efficient renovation measures on rented buildings can be subsidized by the "Energy-Efficient Renovation" program. The promotion of barrier-free conversion through the "Age-Appropriate Renovation" program may also be of interest to landlords.
It is important that you carefully keep all relevant receipts and documents to be able to prove your expenses and advertising costs. I also recommend that you regularly inform yourself about current changes in laws and tax measures for landlords in order to take advantage of all opportunities for tax optimization.
I hope my explanations have been helpful to you and I am happy to answer any further questions you may have. Thank you for your trust and attention.
Sincerely,
Lilli Reuter
