Calculation of the 66% rent according to § 21 of the Income Tax Act for 2012, including operating costs or excluding them?
July 19, 2012 | 40,00 EUR | answered by Michael Herrmann
2012 Rental to Relatives § 21 Estg:
According to the Berlin Senate Department for Finance, file number III B-S 2253-1/2012-2: Determination of the local rent for single and two-family houses
- for the examination of a discounted transfer according to § 21 para. 2 Estg, the net cold rent + housing quality supplement + operating costs should be used.
Are the operating costs actually to be included in the basis for the 66%?
Do these earnings amount to 66% only correspond to line 11 (2011) in the tax return and the operating cost contributions must be additionally received and entered in line 13?
In my understanding, line 11 (66%) and line 13 (100%) would then contain operating costs - so 166%.
So far (2011) I had stated = 56% of the net cold rent in line 11 and the operating costs plus the previous year's arrears in line 13.
The operating costs have so far been fully recognized as deductible expenses.
I would set the rent for line 11 as follows:
local net cold rent (known)
+ housing quality supplement (known)
Total x at least 66% = new rent
I would continue to receive the operating costs as advances and record them in addition to the arrears in the previous year in line 13.
Can I do this or do a total of 166% of the operating costs need to be received in order for the expenses to be fully recognized?
I would greatly appreciate a prompt response.
Dear questioner,
First of all, thank you very much for your inquiry, which I would like to answer based on the information you provided and in the context of your contribution during an initial consultation. The response is based on the description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.
The comparison calculation, whether a discounted provision related to the local comparative rent is below 66% of the local rent, has nothing to do with the entries in Annex V.
The clarification of the discounted provision to relatives is based on the gross rent including operating costs. Therefore, if the payments made by relatives correspond to at least 66% of the locally demanded warm rent, the advertising costs for the respective property can be fully claimed.
In my opinion, your question concerns the misleading wording in Annex V. Here, it is only required to separate cold rent and additional charges on the income side. Subsequently, a separation regarding the rental to relatives is again required.
Therefore, you should enter the cold rent in line 11 and the proportional additional charges of the relatives in line 13. There is no requirement to consider the amounts twice. However, the sum of the two amounts must be 66% of the local warm rent. Whether this is achieved by, for example, paying 100% of the local cold rent and no additional charges, or due to another distribution, does not matter.
I hope that these explanations have given you a sufficient overview of the situation within the scope of your contribution and this initial consultation.
Yours sincerely,
Michael Herrmann
Diploma in Financial Management
Tax consultant
