Are there tax differences between owner-occupied and rented properties?
August 7, 2023 | 50,00 EUR | answered by Mia Pilz
Dear Tax Consultant,
My name is Anna Zimmermann and I have a question regarding the tax differences between self-occupied and rented properties. Several years ago, I purchased a condominium that I initially lived in myself. However, I have since moved and have been renting out the apartment for some time.
My concern is that I may have incorrectly or incompletely reported taxes, as I am not sure of the exact tax implications for self-occupied and rented properties. I am wondering if there are differences in the taxation of rental income compared to the taxation of self-occupied properties. I am also interested in whether I may have missed out on tax benefits or if I could possibly claim back taxes.
Could you please explain to me the tax differences between self-occupied and rented properties? How does renting out my apartment affect my tax return? Are there any tax benefits that I may have not taken advantage of? And are there any ways to claim back or optimize taxes?
Thank you in advance for your help and support.
Best regards,
Anna Zimmermann
Dear Mrs. Zimmermann,
Thank you for your question regarding the tax differences between owner-occupied and rented properties. It is important to understand the tax aspects related to your condominium in order to maximize potential tax benefits and avoid errors in your tax return.
Generally, there are different tax regulations for owner-occupied and rented properties. For an owner-occupied property, no rental income is taxable as you are living in the apartment yourself. In this case, however, certain tax benefits such as the homeowner's allowance or the ability to deduct certain costs such as interest on loans or renovation costs can be utilized.
For a rented property, on the other hand, rental income must be taxed. However, various costs such as maintenance expenses, management fees, or depreciation can be claimed as tax deductions. Additionally, there are opportunities to use special depreciation or tax benefits related to the preservation of historic buildings.
If you have already incorrectly or incompletely reported taxes, it is advisable to seek the advice of a tax consultant. A tax consultant can help you identify potential tax benefits and optimize your tax return. It is also possible to reclaim taxes if you find that you have overpaid or certain costs were not taken into account.
Overall, it is important to be familiar with and understand the tax aspects of your property in order to take advantage of potential tax benefits and avoid errors in your tax return. I am happy to assist you with any further questions and support you with any tax-related matters concerning your property.
Kind regards,
Mia Pilz, Tax Consultant
