How can I save taxes as a landlord?
May 14, 2022 | 50,00 EUR | answered by Zofia Schulz
Dear Tax Advisor,
My name is Dietrich Becker and I am a landlord of several properties. In recent years, I have noticed that I have to pay more and more taxes and therefore wonder how I can save taxes as a landlord.
Currently, I generate a profit with my rental properties that needs to be taxed. Additionally, I have high advertising costs that I would like to deduct for tax purposes. However, I am unsure which costs I can specifically deduct and how best to proceed to save taxes.
My concern is that due to my lack of knowledge about tax regulations and opportunities, I may not be optimally benefiting from tax breaks and therefore may have to pay unnecessarily high taxes. That is why I am wondering what specific measures I can take to reduce my tax burden as a landlord.
Can you give me specific tips on which costs I can deduct as a landlord for tax purposes? Are there ways in which I can optimize my income as a landlord to reduce taxes? What are the tax benefits for landlords that I may not have utilized so far?
I would appreciate your expert advice to improve my tax situation as a landlord and effectively save taxes. Thank you in advance for your support.
Sincerely,
Dietrich Becker
Dear Mr. Becker,
Thank you for your inquiry and your interest in effective tax optimization as a landlord of properties. As a tax advisor with extensive experience in this area, I can provide you with some tips on how you can reduce your tax burden as a landlord.
First and foremost, it is important that you claim all relevant costs associated with the rental of your properties as tax-deductible. These include maintenance and repair costs, management fees, insurance premiums, property tax, loan interest, depreciation on the building and furniture, as well as rental costs (e.g. advertisements, broker commissions). These expenses reduce your taxable profit and therefore your tax burden.
Furthermore, make sure to keep all receipts and evidence of your deductible expenses carefully in case of a tax audit. I also recommend documenting your income and expenses regularly and maintaining clear bookkeeping to keep track of your financial situation.
Another way to save taxes as a landlord is to set aside reserves for major repairs or renovation projects. By creating reserves, you can reduce your tax burden in certain years and thus decrease your taxable income.
Additionally, there are tax benefits for landlords who carry out certain energy-efficient renovation measures on their properties. In some cases, you may be able to claim subsidies or tax deductions to minimize your tax burden and improve the energy efficiency of your properties.
Overall, it is important to stay informed about current tax regulations to take advantage of all opportunities for tax optimization and not miss out on any tax benefits.
I hope these tips will help you improve your tax situation as a landlord in the future. Please feel free to contact me for further questions or detailed advice.
Best regards,
Zofia Schulz, Tax Advisor
