What role do advertising costs play in the taxation of rented properties?
July 29, 2023 | 45,00 EUR | answered by Otto Dornbusch
Dear tax advisor,
my name is Hilde Weber and I have owned a rented property in Munich for several years. So far, I have not delved deeply into the topic of property taxation, as I have mainly focused on renting out and maintaining the property. However, I have now noticed that the tax burden on my rental income is increasing and I would like to learn more about deductible expenses in this context.
Currently, I pay a considerable amount of taxes on my rental income every month, without knowing if there are any expenses I could claim to reduce my tax burden. I wonder if there are specific expenses such as renovation or maintenance costs that are deductible as advertising costs and could therefore lower my tax burden.
My goal is to gain more transparency about my tax options as a landlord and, if necessary, take measures to optimize my tax burden. Therefore, I would be very grateful if you could explain to me the role of advertising costs in the taxation of rented properties and which expenses can specifically be claimed as advertising costs.
Thank you in advance for your support.
Sincerely,
Hilde Weber
Dear Mrs. Weber,
Thank you for your inquiry regarding real estate taxation and deductible expenses. It is good that you are looking into this topic in order to optimize your tax situation as a landlord.
Deductible expenses play an important role in the taxation of rental properties, as they serve to reduce the rental income and therefore decrease the tax burden. Deductible expenses include all costs related to the rental of the property and necessary for generating rental income. These may include renovation and maintenance costs, management fees, insurance premiums, property tax, interest on loans used to finance the property, as well as depreciation on the building and furnishings.
This means that you can claim all costs related to the rental of your property as deductible expenses in your tax return. These expenses reduce your taxable rental income and thus lead to a decrease in your tax burden. If you have not previously claimed all deductible expenses on your tax return, it is possible that you can reduce your tax burden by including these expenses.
It is therefore advisable to keep all relevant receipts and invoices carefully and to consider them when preparing your tax return. If you are unsure about which expenses can be claimed as deductible expenses, I am happy to assist you in analyzing your individual tax situation and helping you optimize your tax burden.
I hope this information is helpful to you and I am available for any further questions you may have.
Sincerely,
Otto Dornbusch
