Income and expenses from rentals
March 19, 2012 | 25,00 EUR | answered by Dr. Yanqiong Bolik
Dear Sir or Madam,
My daughter purchased a small condominium at the end of November 2011, which is currently rented out. Since she is currently living with us, she will only move into her own home in about 1-2 years. In her income tax return for 2011, she included rental income (for December).
Question:
Can she safely claim expenses such as depreciation, interest, and ancillary costs for the period of renting out the property (1-2 years), or is there a minimum duration of the rental agreement? I am not sure if the income tax will be recalculated later due to, for example, a too short rental period. The ancillary cost statement is presented by the property management every year in the fall. Should she only claim the ancillary costs actually paid in the previous year for the income tax return (deadline end of May)?
Thank you in advance and kind regards.
Dear inquirer,
Thank you for your inquiry, which I am happy to answer taking into account your input and the rules of this platform.
Please note that my explanation is based on the facts presented, and that adding, omitting, changing the information, or the ambiguity of the information can change the tax result.
If your daughter rents out the apartment with the intention of generating a surplus, income from rental and leasing is generated. The duration of the lease agreement is initially irrelevant. The important factor is the intention to generate a surplus.
Depreciation, financing expenses, and ancillary costs are typical deductible expenses. Expenses should be deducted for the calendar year in which they were incurred.
If there is still uncertainty, please feel free to use the follow-up function.
Best regards,
Dr. Yanqiong Bolik
Tax advisor
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 2132 1815
Email: info@zdbz.de
www.steuerberatung.zdbz.de
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