Do I have to declare my rental income in the income tax return?
March 29, 2022 | 40,00 EUR | answered by Andreas Stricker
Dear Sir or Madam,
my name is Christine Maier and I have a question regarding my income tax return. This year, I have for the first time a rented property and receive regular rental income as a result. Now I am wondering if I have to declare this rental income in my income tax return and how to correctly tax it.
I am unsure, as I have never had rental income before and do not know exactly how it should be treated for tax purposes. I do not want to make any mistakes and get into trouble with the tax office afterwards. Therefore, it would be very helpful if you could explain to me if and how I have to declare my rental income in the income tax return.
Furthermore, I would like to know if there are any specific tax regulations or opportunities to minimize the tax burden on my rental income. For example, are there any specific expenses or depreciation that I can claim to optimize my taxes?
I appreciate your support and expertise on this matter and thank you in advance for your help.
Sincerely,
Christine Maier
Dear Mrs. Maier,
Thank you for your inquiry regarding your income tax return and the rental income from your rented property. It is understandable that you are unsure about how to correctly report and tax these earnings in your tax return. I will gladly explain in detail what you should consider in this situation.
In general, rental income must be reported in the income tax return. They are considered income from rental and leasing and are subject to income tax. Therefore, you must report the amount of your rental income and also deduct any possible deductible expenses. Deductible expenses are costs related to the rental, such as repairs, maintenance costs, management costs, or interest on loans. You can deduct these expenses from your rental income and thus reduce your taxable income.
In addition to deductible expenses, you can also claim depreciation. For rented properties, you can depreciate the acquisition or production costs over the useful life. These depreciations also reduce your taxable income.
So there are indeed ways to minimize your tax burden on rental income by claiming deductible expenses and depreciations. However, it is important that you accurately document and provide evidence for all expenses and income. Otherwise, you may encounter problems with the tax authorities.
I recommend keeping all relevant receipts carefully and, if necessary, seeking support from a tax advisor to ensure that you are taking advantage of all opportunities for tax optimization.
I hope that I could help you with this information. If you have any further questions, I am at your disposal.
Sincerely,
Andreas Stricker
