Which tax return do I have to file as a property owner?
June 26, 2024 | 40,00 EUR | answered by Tina Ullmann
Dear tax advisor,
My name is Erika Voigt and I am the proud owner of a property. A few years ago, I purchased an apartment that I rent out, and now I want to make sure that I fulfill my tax obligations correctly. I have never submitted a tax return before and I am unsure which tax return I need to submit as a property owner.
I bought my apartment mainly for financial reasons, to generate rental income in the long term. I am aware that I need to declare this income for taxation purposes, but I am unsure of how exactly this works. I have also heard that there are different tax forms and I am not sure which one is relevant for me as a property owner.
My biggest concern is that I might make a mistake and face tax consequences or even penalties. That is why I want to educate myself early and do everything correctly. I also want to make sure that I can optimize any tax benefits available to me as a property owner.
Could you please explain to me which tax return I need to submit as a property owner and any specific considerations to keep in mind? Are there any special forms or attachments that I need to fill out? How can I ensure that I provide all relevant information accurately and take advantage of any tax benefits available?
Thank you in advance for your assistance.
Kind regards,
Erika Voigt
Dear Mrs. Voigt,
Thank you for your inquiry regarding your tax obligations as a property owner. I understand that you are unsure and would like to gather information early to avoid possible tax consequences and optimize tax benefits. I would be happy to explain to you what tax return you must file as a property owner and what you should pay attention to.
As a landlord of a property, you are generally required to file an income tax return. In this tax return, you must declare the income from the rental of your property and can also claim certain expenses, such as maintenance costs, advertising costs, or depreciation. There are specific forms that you must fill out in your tax return to accurately represent your income and expenses as a landlord.
An important form that you must fill out as a landlord is Annex V to the income tax return. In this form, you enter all relevant data about your rented property, such as the amount of rental income, the amount of advertising costs and depreciation. You can also consider possible tax special regulations, such as the local comparative rent or the depreciation (wear and tear).
To ensure that you provide all relevant information correctly and make optimal use of tax benefits, I recommend that you carefully collect and keep all receipts and documents related to your rental activities. These may include rental agreements, utility cost statements, invoices for maintenance measures, and other expense receipts. These receipts serve as proof of your statements in the tax return and can be of great importance in case of an audit by the tax office.
It is advisable to contact a tax advisor early on to clarify your tax obligations as a property owner and to receive assistance in preparing your tax return. A tax advisor can help you identify possible tax benefits and fill out your tax return correctly and completely.
I hope that this information has been helpful to you. If you have any further questions or need assistance, I am at your disposal.
Sincerely,
Tina Ullmann
