What costs can I claim for tax purposes when renting out my property?
September 7, 2022 | 50,00 EUR | answered by Tatiana Seiler
Dear tax advisor,
my name is Hildegard Hirschberg and I own a rented property. I am facing the challenge of claiming the costs associated with renting out the property for tax purposes. Unfortunately, I lack the necessary knowledge to accurately record these costs and report them in my tax return. I have already incurred some expenses related to the rental, such as repairs, maintenance costs, advertising expenses, and management fees.
My concern is that I may overlook costs that could be tax deductible and as a result, I may be giving away money. Therefore, I would like to know from you which costs I can claim for tax purposes when renting out my property and how to correctly report them in my tax return. Are there any specific requirements or restrictions that I need to consider?
Furthermore, I am also interested in any possible tax benefits or depreciation options that may be available to me as a landlord. Are there any special regulations for rented properties that I can take advantage of to minimize my tax burden?
I thank you in advance for your support and advice on this matter.
Sincerely,
Hildegard Hirschberg
Dear Mrs. Hirschberg,
Thank you for your inquiry regarding the tax deductibility of costs related to the rental of your property. It is important to accurately record all relevant expenses in order to benefit from possible tax advantages. Therefore, I will explain to you in detail which costs you can deduct for tax purposes and how you should report them in your tax return.
First of all, you can deduct the following costs related to the rental of your property for tax purposes: repairs and maintenance costs, advertising expenses such as advertisements for tenant search or broker commissions, administrative costs such as account management fees or costs for the preparation of utility billings, as well as insurance premiums for the property. Interest and repayment rates for mortgage loans as well as depreciation on the value of your property can also be deducted for tax purposes.
It is important that you carefully keep all cost receipts and report them in your tax return. For this purpose, you can, for example, set up a separate filing system to keep track of your expenses.
Regarding possible tax advantages and depreciation options as a landlord, there are some regulations that could be available to you. For example, you can claim straight-line depreciation for your rented property. In this case, the acquisition cost of the property is depreciated over a period of 50 years. Additionally, you can also claim special depreciation if you carry out certain energy-efficient renovation measures on your property.
It is advisable to consult a tax advisor to receive individual tax advice and ensure that you can take advantage of all tax benefits.
I hope this information is helpful to you and I am available for further questions.
Best regards,
Tatiana Seiler
Tax advisor specializing in real estate taxation.
