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Deductible expenses for rental properties

July 27, 2018 | 30,00 EUR | answered by StB Steffen Becker

Can the ancillary costs (notary, land register) of a gift be deducted as advertising costs from rental income?
Case 1: Gift from parents (rented property) as of 1.1.18, costs already incurred in 2017 and paid by me.
Case 2: Partial transfer of ownership (rented property) to wife as of 1.1.17, costs incurred in 2017 and paid by me. Can I deduct the costs from rental income and in which year (case 1)?
Thank you for your help.

StB Steffen Becker

Dear questioner,

Thank you for your inquiry. I will answer this as part of an initial consultation based on the information provided. Missing or incorrect information can affect the legal outcome.

The BMF letter of 13.01.1993 - IV B 3 - S 2190 - 37/92 states in paragraph 13, sentences 1 and 2 the following:

"Costs incurred in the context of a partially remunerated acquisition (e.g. notary, court fees) are fully attributed to the acquisition costs (Federal Fiscal Court ruling of October 10, 1991 - BStBl 1992 II p. 239). Costs of a fully gratuitous acquisition do not constitute acquisition costs or advertising costs."

Therefore, notary and land registry costs cannot be claimed as advertising or acquisition (ancillary) costs in any fully gratuitous acquisition.

I hope this information was helpful.

Best regards,
Steffen Becker
Tax consultant