How can I optimize the taxes for my rented property?
May 5, 2022 | 50,00 EUR | answered by Mia Pilz
Dear Tax Advisor,
my name is Marie König and I own a rented property. In recent years, I have noticed that the tax burden on my rental income has been steadily increasing. I am concerned that I could be paying too much taxes and would like to find out how I can optimize the taxes for my rented property.
Currently, I pay income tax on the rental income as well as property tax and possibly also real estate transfer tax. I am unsure if I am taking advantage of all tax optimization possibilities and wonder if there are any tax planning options to reduce my tax burden.
I have heard that there are tax depreciation options for rented properties, such as depreciation for wear and tear (AfA). However, I am not sure if I am applying these correctly and if there are any additional tax savings possible.
Could you please explain to me what tax options are available to optimize the taxes for my rented property? Are there specific depreciation options that I have not yet utilized? What tax planning options can help me reduce my tax burden?
Thank you in advance for your support and advice.
Sincerely,
Marie König
Dear Mrs. König,
Thank you for your inquiry regarding the optimization of taxes for your rented property. It is understandable that you are concerned, as the tax burden on rental income has increased in recent years. There are indeed various tax options to reduce your tax burden and optimally tax your property.
One of the most important ways to optimize taxes for rented properties is tax depreciation, especially depreciation for wear and tear (AfA). AfA allows you to claim the value of your property over its useful life for tax purposes, thereby reducing your tax burden. It is important to calculate and document AfA correctly in order to take advantage of tax benefits.
In addition to AfA, there are other depreciation options that can be used for rented properties, such as special depreciation for heritage properties or deduction for extraordinary wear and tear. It is advisable to seek advice from an experienced tax advisor to fully utilize all relevant depreciation options.
Furthermore, there are tax planning options to reduce your tax burden. These include choosing the right tax accounting method (income-expenditure accounting or balance sheet accounting), optimizing the use of deductible expenses and operating costs, and structuring rental income for tax purposes.
It is advisable to seek individual tax advice to analyze your personal situation and specific tax options for your rented property. An experienced tax advisor can help you optimize your tax burden and identify tax savings potentials.
I hope this information is helpful to you and I am available for any further questions.
Sincerely,
Mia Pilz
