Carrying forward losses from the income category of renting and leasing.
January 12, 2022 | 35,00 EUR | answered by Steuerberater Knut Christiansen
Dear Sir or Madam,
For the preparation of the tax return 2020, I would like to ask the following:
Can losses from the income category "rental and leasing" be carried forward to future income (loss carryforward)? If so, will these be automatically carried forward by the tax office or does one need to submit a request for it?
Since 2018, the situation is as follows:
Year Property A Property B Result:
2018 -3,293 € 3,596 € 303 €
2019 -3,105 € -4,821 € -7,926 €
2020 -17,714 € 6,049 € - 11,665 €
In addition to these incomes, the couple each receive a pension from the statutory pension insurance.
That's it.
Good day,
In principle, negative income is offset with other positive income in the same calendar year. This means that first, negative income from one rental property is offset against positive income from another rental property. Any remaining losses are then offset against income from pensions. Only if after offsetting there are still negative income, these will be automatically determined by the tax office as loss carryforwards.
In 2018, an offset within the rental income category took place. In 2019 and 2020, offsetting with your pension income likely occurred if your pension income was higher than 7,926 EUR or 11,665 EUR.
I hope this answers your question, if not, feel free to ask for further clarification at no cost.
I would like to point out that this forum cannot replace a comprehensive and personal tax consultation, but is mainly intended to provide an initial tax assessment. By adding or omitting relevant information, the legal assessment of your issue could be different.
Best regards,
Knut Christiansen
Tax advisor
