Purchase of a listed property in Schleswig-Holstein
May 16, 2011 | 25,00 EUR | answered by Matthias Wander
We would like to buy a listed building, renovation does not need to be done anymore as it was done by the previous owner. Can we deduct the purchase price of the property from taxes? Or was this only possible for the previous owner? If deduction is possible, please provide a brief calculation.
Married couple, both employed, gross annual income 80,000 euros, full financing of 150,000 euros, rental property, no self-use.
Property is located in Schleswig-Holstein.
Dear Inquirer,
Thank you for your inquiry, which I would like to answer based on the information provided and in the context of your commitment within a first consultation.
Since you are renting out the property, the acquisition costs for the building can be depreciated. There is no depreciation for the land. The depreciation rate for buildings built before 01.01.1925 is 2.5%, otherwise 2%, per year.
Example:
Total acquisition costs: 150,000 (including ancillary costs such as notary fees, property transfer tax, etc.)
minus land: 30,000
Acquisition costs for building: 120,000
of which 2.5% = 3,000 depreciation per year
For construction measures that serve the preservation of historical monuments, increased depreciation may be considered under certain conditions. However, this only applies if the construction measures were carried out by you.
In addition to depreciation, loan interest and other expenses related to the property (e.g. maintenance costs, property taxes, home insurance, heating oil, etc.) can be deducted for tax purposes.
I hope this gives you an initial overview.
Best regards,
Wander
Tax consultant
