How can I save taxes if I rent a property to my GmbH?
May 9, 2022 | 40,00 EUR | answered by Mia Pilz
Dear tax advisor,
my name is Jan Karpinski and I am the owner of a property that I would like to rent out to my GmbH. I have heard that it is possible to save taxes by renting out a property to one's GmbH as a private individual, but I am not sure how exactly this works and what tax aspects need to be considered.
Currently, I am renting out the property privately and earning rental income from it. Since my GmbH is already successfully operating in the real estate sector, I would like to rent out the property to my GmbH to leverage synergies and achieve tax advantages.
My concerns are that I do not know exactly what tax implications renting out the property to my GmbH will have. I want to save taxes, of course, but I also want to ensure that I comply with all tax regulations and do not encounter any issues with the tax authorities.
My question to you as a tax advisor is therefore: How can I save taxes by renting out the property to my GmbH? What tax aspects need to be considered and what possible solutions are there to take advantage of tax benefits while acting in compliance with the law?
I look forward to your expert advice and thank you in advance for your help.
Sincerely,
Jan Karpinski
Dear Mr. Karpinski,
Thank you for your inquiry regarding the rental of your property to your GmbH and the associated tax aspects. I am pleased that you are considering this topic and looking to take advantage of tax benefits. I would be happy to provide you with detailed and expert advice on this matter.
If you rent out your property to your GmbH, you can indeed save taxes, as the rental income will be recorded as operating income for the GmbH and can be offset against operating expenses. This will reduce the GmbH's profit and therefore the corporate tax to be paid.
However, there are some tax aspects to consider when renting out your property to your GmbH. Firstly, you must determine a market-based rent to avoid tax issues. The rental agreement should be concluded in writing and include all relevant agreements. Additionally, you should ensure that the GmbH actually pays the rent to maintain the tax nature of the rental.
Furthermore, you must consider that renting to your GmbH will also have implications on your personal tax return. The rental income must be declared in your income tax return, even though this income is now operating income of the GmbH. Additionally, you should check if special depreciation or tax benefits can be claimed.
To take advantage of tax benefits and act in compliance with the law, I recommend seeking advice from an experienced tax advisor. Together, we can analyze your individual situation, develop tax-optimized solutions, and ensure compliance with all tax regulations.
I hope my explanations have been helpful to you and I am available for any further questions. Thank you for your trust and attention.
Best regards,
Mia Pilz
