Ask a tax advisor on the topic of Real estate taxation

Special requests for property developers for leased condominiums maintenance expenses or production-related expenses

March 16, 2016 | 40,00 EUR | answered by StB Patrick Färber

Dear Sir or Madam,

I have purchased a condominium from the property developer, which is currently still under construction. The condominium is intended to be rented out immediately after completion. The notarization has already taken place.

Now I would like to have additional special requests carried out by the property developer for an extra charge (such as a different room layout, double sinks, changes to electrical wiring, etc.).

Do these special requests qualify as maintenance expenses and therefore be fully deductible as advertising costs immediately, or are they considered production-related expenses and thus only depreciable annually through the write-off?

StB Patrick Färber

Dear inquirer,
the constellation (special requests) you mentioned is not uncommon. However, you must treat these costs as acquisition/manufacturing costs for tax purposes, as they are part of the "construction process".
Therefore, they are only deductible through the building's depreciation.

Best regards,
Tax advisor P. Färber