Do I have to pay taxes on rental income?
June 23, 2024 | 50,00 EUR | answered by Mia Pilz
Dear tax advisor,
My name is Anna Schwaru and I am the owner of a rented property. In the past, I have regularly received rental income from this property, but I have not yet paid any taxes on it. Now I am worried if I have to pay taxes on this rental income and if I may have to pay back taxes.
I purchased my property a few years ago and have been renting it out to a tenant since then. The rental income serves as additional income for me to cover the ongoing costs of the property. However, I have not submitted a tax return for the rental income so far, as I am unsure if I should have done so.
Could you please explain to me if I have to pay taxes on the rental income and what consequences it could have for me if I have neglected to do so thus far? What steps do I need to take now to rectify my tax situation and avoid possible back payments?
I am grateful for your help and appreciate your assistance on this matter.
Sincerely,
Anna Schwaru
Dear Mrs. Schwaru,
Thank you for your inquiry regarding the taxation of rental income from your rented property. I would be happy to assist you and provide you with all relevant information on this topic.
In Germany, rental income from rented properties must generally be taxed. These earnings are considered income and are therefore subject to income tax, regardless of whether you use the property yourself or rent it out. It is important that you accurately declare and pay taxes on your income to avoid any tax consequences.
If you have not previously filed a tax return for your rental income, this could have consequences. In the worst case scenario, you could face back payments due to not properly declaring your income. It is advisable to clarify your tax situation as soon as possible to avoid possible penalties.
To rectify your tax situation, you should first file a tax return for the past years in which you have received rental income. You will need to declare the income from renting and leasing and potentially also claim deductions for expenses such as repairs, renovations, management costs, or loan interest.
It is recommended that you seek the assistance of a tax advisor for your tax matters. A tax advisor can help you fill out your tax returns correctly, take advantage of any tax benefits, and avoid back payments.
In summary, it is important to properly declare and pay taxes on your rental income and rectify your tax situation to avoid any consequences. Do not hesitate to seek professional help to properly handle your tax matters.
I hope this information has been helpful to you and I am available for any further questions.
Best regards,
Mia Pilz
Tax Advisor
