Rental income for small business owners
August 28, 2019 | 30,00 EUR | answered by Steuerberater Knut Christiansen
Hello,
I am a small business owner in the cosmetics industry and have the following question: I sublet my studio to a colleague and would like to know if these rental income count towards the business income (with a limit of 17,500.00 EUR).
That is: Do I enter the rental income in Annex V of the tax return or do I add the rental income to my turnover?
If I enter the rental income in Annex V: Do these income also count as "business income according to § 19 UStG", so I must not exceed the limit of 17,500.00 EUR with these rental income or are they disregarded and only my cosmetics sales count?
I hope I have expressed myself clearly.
Best regards, Jana Hirsch
Good day Mrs. Hirsch,
In principle, the revenues from subletting belong to your revenues from the studio, as the studio is (probably) business assets or was rented for business purposes.
According to § 19 UStG, which contains the small business regulation, it states:
Total turnover is the sum of taxable turnover executed by the entrepreneur in the sense of § 1 para. 1 no. 1, minus the following turnover:
1. Turnovers that are tax exempt according to § 4 no. 8 letter i, no. 9 letter b and no. 11 to 28;
In § 4 no. 12 UStG in turn (one of the sections mentioned here) the rental turnover is regulated. This means that rental income represents business income, but does not count towards the total turnover of § 19 UStG. In the EÜR attachment, you first record the total turnover, but then enter in line 12 the turnovers that do not belong to the total turnover (such as rental turnovers).
I hope this answers your question, if not, feel free to ask additional questions.
I would like to point out that this forum cannot replace a detailed and personal tax consultation, but is primarily intended to provide an initial tax assessment. By adding or omitting relevant information, the legal assessment of your issue could be different.
Kind regards,
Knut Christiansen
Tax consultant
