Property expenses for buildings that do not belong to the business assets.
September 23, 2011 | 40,00 EUR | answered by Dr. Yanqiong Bolik
Dear Sir or Madam,
As there are two questions that are related, I have set the stake at 50.00 EUR.
My partner and I own a multi-family house (3 apartments). One of the three apartments is used by my partner for her business and self-employment. We have jointly purchased the neighboring property for specific purposes related to her business. None of the apartments or the new property are part of the business assets.
1. Question: Can costs incurred for the maintenance of the existing property (gardener) be deducted as business expenses, either fully or in part?
2. The planned garden design for the new property is primarily aimed at the needs of the self-employment. Can these costs be deducted as business expenses, either fully or in part?
If any further information is needed to answer the questions, please feel free to contact me via email.
Best regards,
Dear inquirer,
Thank you for your inquiry, which I am happy to answer while taking into account your contribution and the rules of this platform.
Please note that my explanation is based on the facts presented, and that adding, omitting, changing information, or the ambiguity of the information can change the tax result.
1. Condominium used for business and self-employment
I assume that your partner uses the condominium exclusively for her business and self-employment, and that she also needs this space necessarily.
In this case, the share of this condominium assigned to your partner belongs to her business assets, even if it is not recorded in business documents. The expenses incurred by maintaining the condominium can be deducted as business expenses, as long as your partner has borne the costs. If she has not yet recorded the condominium in her business assets, the tax office may request her to include her share of the condominium in her business assets in order to claim the expenses.
2. Adjacent property
The same principle applies to the adjacent property. Essentially, this is also a business property. You must convincingly demonstrate to the tax office that the garden design is carried out exclusively for the purpose of generating income from self-employment. The expenses can be deducted as business expenses. In this case, you are essentially telling the tax office that you need the property necessary for generating income from self-employment. The consequence will be that the tax office records your half of the property as business assets.
I hope I could assist you.
If there is still any uncertainty, please feel free to use the follow-up function.
Best regards,
Dr. Yanqiong Bolik
Tax consultant
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 9332 2657
Email: info@zdbz.de
