Lost rental income / repair costs
April 27, 2010 | 15,00 EUR | answered by Michael Herrmann
Hello,
On 01.01.2009 I bought a small apartment located directly below the apartment I already own and live in. In April, I submitted a building application to connect the two apartments with a spiral staircase. The building permit was granted at the end of May 2009. The construction work was finally completed in February 2010.
Now my question is:
What costs can I possibly claim in my income tax return? Both apartments (now connected) are occupied by me and my family; however, one of them was vacant for 4 months. Can I claim "lost rental income" for this period?
Can I deduct the costs of the construction work and to what extent? Perhaps double, since it involves 2 apartments?
Thank you!
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 initial consultation. The response is based on the facts presented. Missing or incorrect information regarding the actual circumstances can affect the legal outcome.
There is a possibility to receive a tax reduction of 20% for the labor costs of the craftsmen. The condition is that the invoices were not paid in cash. The maximum amount is 1,200 euros. In the tax return (main form, page 3), the total labor costs should be indicated, not just 20%.
No amount can be deducted for the vacancy of the apartments, as there is no intention to rent them out. Lost income can never be considered for tax reduction.
I hope this information gives you an initial overview of the situation and remain
Yours sincerely,
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax advisor
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