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Deductible expenses Annex V Income Tax Return

September 25, 2013 | 25,00 EUR | answered by Steuerberater Thomas Textoris

If a tenant pays the operating costs directly to the suppliers/institutions on behalf of the landlord, can the landlord then claim these as deductible expenses in the Annex V?

Steuerberater Thomas Textoris

Dear questioner,

In the context of an initial consultation and considering the regulations of this forum, I would like to answer your question.

If a third party (the tenant) incurs costs that are caused by the income generation of a taxpayer (the landlord), they cannot generally be considered as deductible business expenses, so-called third-party expenses.

An exception to this is the "abbreviated payment route". The tenant could have also paid the operating costs/NK directly to the landlord, who would then make the payment in their own name. Instead, the shortened payment route was chosen with the direct payment from the tenant.

The expenses borne by the tenant can be considered as expenses of the landlord and can be claimed as business expenses in Annex V.

Kind regards,

Thomas Textoris
Tax consultant