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Usufruct, perpetual burdens, special expenses

February 23, 2010 | 15,00 EUR | answered by Dipl.BW/SB Ulrich Stiller

Usufruct, perpetual burdens, special expenses

Hello,

In 1999, I received a two-family house from my parents. My parents have been granted a lifelong right of residence for one of the two apartments. This right is being exercised as agreed. According to the notarized contract, the right of residence is gratuitously granted in terms of debt law. The annual value of the right is estimated at 6000 DM.

In addition to the residential property, small agricultural areas have also been transferred. The usufruct on the total contract rights amounts to 8400 DM according to the contract.

I pay all costs for the residential property (property taxes, insurance, electricity, water, garbage, heating...) and additionally a small rent of approximately 200€ monthly to my parents!!! The rent payment is voluntary and is not included in the notarial contract.

How can I claim the costs incurred at the tax office?

Can I deduct the actual costs or use the lump sum of 6000 DM (3067.75€)?

How will these statements affect my parents?

Thank you for your efforts.

Sincerely,

H.B.

Dipl.BW/SB Ulrich Stiller

Dear inquirer,

Thank you for your inquiry, which I would like to answer based on your information and in consideration of your minimum stake as follows:

If you do not generate rental income, you cannot claim any expenses for tax purposes. Only those who generate income can claim operating expenses or advertising costs for tax purposes. The value of the usufruct cannot be considered as income. Therefore, the deduction of expenses is generally not possible for you under any category of income. I also cannot identify any other possible deduction options, such as special expenses, based on your information.

I regret not being able to provide a more positive answer, but I hope that my explanations have still been helpful to you within the scope of your minimum stake.

Best regards,

Ulrich Stiller
Tax consultant