Ask a tax advisor on the topic of Income tax return

Tax deductibility of notary and land registry costs in connection with a gift.

April 22, 2017 | 40,00 EUR | answered by StB Steffen Becker

I received a real estate gift from my grandparents in 2015. I paid for the notary and land registry costs myself, except for the costs for the deletion of the existing mortgages, which amounted to a few hundred euros and were covered by the donor. The remaining costs amounted to a total of approximately 4200 euros and were fully borne by me. These costs were incurred solely in 2015. Additionally, a usufruct reservation was agreed upon in the gift until December 31, 2015.

Is it possible for me to deduct the notary and land registry costs that I fully paid for in 2015 from my income tax return for the tax year 2016 or in later years (2016 and/or beyond)?

StB Steffen Becker

Dear inquirer,

Thank you for your inquiry. I will answer this within the scope of an initial consultation based on the information provided by you. Missing or incorrect information may affect the legal outcome.

If the property is not used for income purposes, the costs according to § 12 EStG are not tax deductible as costs of private living expenses.

If the property is used for income purposes, the costs you incur would be considered subsequent acquisition costs, which may be depreciated from the year 2015 onwards.

I hope I could assist you further.

Best regards,
Steffen Becker
Tax consultant