Forecast calculation for furnished apartment
July 25, 2021 | 40,00 EUR | answered by Steuerberater Knut Christiansen
I need to create a forecast calculation for a furnished apartment that I bought last year for the tax office. I have since rented out the apartment and it was not purchased as a "hobby." Possibly, my daughter will move in next year for a maximum of 5 years. However, she will also have to pay me rent with a rental agreement. I am now required to provide evidence of profitability in a statement of "income/expenses."
According to my research, the following expenses will be incurred in relation to rental income: property tax, operating costs according to the property management, loan interest, rental loss risk (I have calculated 4% of the annual gross income here in Munich), and maintenance of the apartment (interior). Are there any other expenses I need to include? For example, depreciation at 2% ??? or something similar?
Thank you very much in advance for your response!
Good morning and thank you for using frag-einen.com!
Regarding your question, I would like to provide you with the following information.
A forecast calculation must be made when the agreed rent is below 66%, but above 50% of the local customary rent. In the case of furnished rental, a furniture surcharge must be taken into account.
Therefore, you should first check whether the rent you have in mind corresponds to at least 66% of the local customary rent. If this is the case, in principle, in the case of planned long-term rental to third parties (i.e. no self-use), it should be assumed that profit will be made (according to the law!). In this case, no surplus forecast would be necessary.
Otherwise, in the surplus forecast, you would definitely have to take depreciation into account. These are determined based on the acquisition costs of the building and amount to 2% per year. To determine the building portion, please use the working aid from the Federal Ministry of Finance if necessary: https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Steuern/Steuerarten/Einkommensteuer/2020-04-02-Berechnung-Aufteilung-Grundstueckskaufpreis.html
Furthermore, there are also depreciations on the rented furniture. These would also have to be depreciated based on their typical useful life. The useful life may need to be researched individually. For example, a new kitchen would be depreciated over 10 years, while cabinets etc. would be depreciated over 12 years.
Here is another link regarding the surplus forecast that may help you further.
I hope this answers your question, but feel free to ask any follow-up questions at no cost.
I would like to remind you that this forum cannot replace a detailed and personal tax consultation, but is mainly intended to provide an initial tax assessment. By adding or omitting relevant information, the legal assessment of your issue could be different.
Best regards,
Knut Christiansen
Tax advisor
