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Construction of a dormer window

The construction of a dormer with an extension of the living area by a few square meters, in my understanding, results in the entire construction costs being classified as production costs, with the consequence of a correspondingly long depreciation period.

Now, what happens if, as part of the renovation of an attic apartment, a dormer is integrated into one room (approximately 4 sqm more living area) and a second room is converted into a loggia (7 sqm, open in the outdoor area)? According to the residential area regulation, the area of a loggia is only counted as 25%, meaning the total living area of the entire apartment would not increase. According to DIN 277, the loggia still counts as part of the living area, but according to DIN 277, the space under the sloping ceiling would have already been counted as part of the living area, regardless of the height, so the installation of the dormer would not increase the living area.

What calculation method does the tax office use to assess this important question? Or what possibilities exist to enhance a loft apartment with a small dormer without classifying the entire renovation as production costs?

Steuerberater Bernd Thomas

Dear questioner,

I am happy to answer your inquiry based on the information provided by you in the context of an initial consultation on frag-einen.com. The response is based on the factual information you have provided. Missing or inaccurate information can affect the legal outcome.

Expenses for enlarging the living space of a rental property are considered production costs, even if the enlargement is insignificant. An extension already exists with a small increase in usable area, for example, when a dormer is first built, a balcony or terrace is added (Federal Fiscal Court, May 9, 1995, IX R 69/92, BStBl II 1996, p. 630). The tax office assesses the usable area in a manner consistent with §§ 42 and 44 of the II. Berechnungsverordnung.

For a unified construction measure on an asset, a division into production costs and maintenance expenses is usually not possible (Federal Fiscal Court, September 25, 2007, IX R 28/07, juris).

Sincerely,

Bernd Thomas
Tax consultant

Information in accordance with DL-InfoV: Tax consultant Dipl.-Kaufmann (FH) Bernd Thomas, Tax consultant, Jöhrensstraße 1, 30559 Hannover, member of the Tax Consultant Chamber of Lower Saxony, membership number 146580, professional liability insurance by R+V Allgemeine Versicherung AG, Mittlerer Pfad 24, 70499 Stuttgart, insurance sum: 250,000 euros for each individual claim; annual maximum benefit: 1,000,000 euros (for all damages in one insurance year); the professional regulations apply, in particular the Tax Consultancy Act (StBerG), implementing regulations to the Tax Consultancy Act (DVStB), professional code (BOStB), Tax Consultant Fee Regulation (StBVV) (regulations can be viewed at: https://www.berufsrecht-handbuch.de/, http://www.gesetze-im-internet.de/stberg, www.gesetze-im-internet.de/stbvv/), the professional title Tax Consultant was awarded in the Federal Republic of Germany.

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Steuerberater Bernd Thomas

Steuerberater Bernd Thomas

Hannover

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