Ask a tax advisor on the topic of Income tax return

Expenses before the start of construction for a self-occupied property

May 17, 2015 | 30,00 EUR | answered by StB Patrick Färber

What expenses can be claimed for a self-used property in the income tax return before the start of construction?

Background:
We have currently submitted a building permit for a newly built single-family house, with construction planned to begin in June 2015. The plot of land was already purchased and paid for in 2014. Therefore, expenses have already been incurred for notary fees, purchase price of the plot of land, real estate transfer tax, financing costs, planning costs, etc., which we would like to claim as expenses for a self-used property (preliminary costs under § 10e EStG) in the 2014 tax return.

StB Patrick Färber

Dear inquirer,

May I ask for clarification here to make sure I understand correctly that you are indeed referring to § 10e EStG?

This provision has not been in effect since 1991. There are currently no options to deduct these costs for a self-occupied property, as no income is generated from it.

There may be tax reductions available under § 35a EStG (craftsman services), but even here, only certain expenses are eligible, not the pure construction costs.

Is this what you were referring to or is there any information missing that I should be aware of?

Best regards,
Tax advisor Patrick Färber