Investment in residential property promotion
July 9, 2010 | 30,00 EUR | answered by Michael Herrmann
Dear Sir or Madam,
In July 2009, we purchased a condominium in an old water mill that is listed as a historic monument and moved in there in August 2009.
The building received a tax certificate according to §40 DschG from the lower monument authority in Hattingen in July 2003 after renovation.
Therefore, we applied for a tax incentive according to §10f EStG (Attachment FW Promotion of Home Ownership) in our income tax return for the year 2009.
This incentive was denied to us by the tax office in Hattingen with the following reasoning:
"The consideration of depreciation amounts according to §10f EStG cannot be acknowledged because a deduction for the individual successor is not possible."
Is this statement correct?
Can only the previous owner receive a tax incentive and not the new owner?
Yours faithfully,
Dear inquirer,
First of all, thank you for your inquiry, which I would like to answer based on the information provided and in the context of your commitment as part of an initial consultation. The response is based on the description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.
Section 10f of the Income Tax Act regulates the tax benefits for listed buildings and properties used by taxpayers for their own residential purposes. According to Section 10f of the Income Tax Act, the taxpayer can deduct expenses for their own listed building in the calendar year of completion of the construction work and in the nine following calendar years, up to 9% of the taxes incurred in that year.
The tax relief provided by Section 10f of the Income Tax Act therefore refers to own expenses for the preservation of a listed building. This does not include the acquisition of a property, even if the previous owner has claimed the benefit.
The statement of the tax office is correct.
I hope that this information has given you an initial overview of the situation in the context of your commitment and remain
Sincerely,
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax advisor
