A house with profit and one with loss.
October 7, 2016 | 30,00 EUR | answered by Dipl.-Kfm. Frank-Olaf Illiges
Since last year, I own two multi-family houses. One of them had more maintenance expenses, which are expenses that can be deducted in the same year, than I had income from this house, resulting in a loss. What is the correct way to account for this loss in my tax return? Normally, I fill out a separate form "Income from Rental and Leasing" for each of the two properties. Is there another form to calculate and prove the loss, or is it done informally, or does the tax office automatically take it into account if there is a visible loss before the income from one house?
Dear inquirer,
Thank you for your inquiry, which I would be happy to answer taking into account your effort and the rules of this platform.
Please note that my explanation is based on the situation you have presented, and that adding, omitting, changing information, or the ambiguity of the information can change the tax result. Please be aware that this does not replace individual comprehensive advice.
For your income tax return for the calendar year 2015, you only need to complete Annex V "Income from renting and leasing" for each house, and determine the surplus of income over expenses for each individual house.
Loss offsetting will then be done automatically by the tax office as part of the income tax assessment. There is no separate form to fill out.
Sincerely,
Dipl.-Kfm. Frank-Olaf Illiges
Tax advisor
Ringstraße 98
33378 Rheda-Wiedenbrück
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