Rental income
October 1, 2009 | 15,00 EUR | answered by Irmingard Huber-Stempfel
How are rental incomes taxed when the apartment is fully financed and only 1033 euros are left for income reduction? How much of the notary fees, etc. can be deducted?
Kind regards,
Renate Rausch
Dear questioner,
the questions are very general, but I will still try to answer them.
The rental income from a property held in private assets is taxed in the income tax return as income from renting and leasing (Attachment V). Income from renting and leasing is the difference between rental income and advertising costs. Rental income is the gross rent, including utilities.
Advertising costs include the housing allowance without the allocation to the maintenance reserve, the interest on debts (not the repayment), the ground rent, account management fees, maintenance costs, etc.
The notary costs must be separated into financing costs (= advertising costs), e.g. for the land charge, and acquisition costs. The notary costs related to the purchase are added to the purchase price. The same applies to the registration costs, as far as they are related to the purchase and not to the financing. These will also be added to the acquisition costs. The depreciation (standard rate 2%) is deducted as advertising costs from the total acquisition costs. Depreciation is only granted proportionally in the year of acquisition.
The consultation takes place within the scope of the initial consultation. Since no figures are available, only fundamental statements about rental income can be made.
I recommend that if you cannot explain the income using the form (especially the advertising costs), you should consult a tax advisor. I am also happy to assist with this.
A final remark: rental income can turn negative, i.e. a loss can occur. In this case, this loss will reduce other income such as income from non-self-employment.
If you have any further questions, please use the follow-up function.
Best regards,
I. Huber-Stempfel
Tax advisor and lawyer
