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Deductibility of notary fees for purchasing a property

September 25, 2010 | 25,00 EUR | answered by Matthias Wander

In 2009, an apartment was purchased for investment purposes with a sales contract dated December 18, 2009 (day of notarization) and mortgage registration on December 18, 2009. According to the information from the notary, the notarization is legally valid in 2009. The ownership was transferred on January 30, 2010. The notary fees for the mortgage and the sales contract were paid in 2009, (the notary fees for the property manager's consent, however, in 2010, property transfer tax, etc. also in 2010). The apartment is now rented out after renovation and furnishing in 2010. (There was no self-use at any time). If the listed notary fees of 780 euros including VAT for the sales contract notarization and 220 euros including VAT for the mortgage registration had been paid in 2010, they would, according to my information, be considered as acquisition costs and would be depreciable for the building's wear and tear in case of renting out the property (is that correct)? However, what about deductibility for 2009, since the mentioned notary fees were paid in 2009, but the transfer of ownership only took place at the end of January 2010 (the keys were already handed over in December 2009), can these be claimed and if so, where and how much should they be accounted for? (In 2009? In 2010? In both years? Under which position/line? Should the remaining acquisition costs/depreciation only be accounted for in 2010? Or should everything be accounted for in 2010? Thank you in advance for your information. Kind regards.

Matthias Wander

Dear client,

Thank you for your inquiry, which I would like to answer based on the information provided and in the context of your commitment within a first consultation.

Depreciation begins on the day of the transfer of benefits and burdens on January 30, 2010. All expenses related to the acquisition costs of the building will be depreciated, even if they were already paid in 2009. The acquisition costs also include the costs for the notary for the purchase contract and manager's consent.

The costs for the mortgage order (notary and court costs) are not acquisition costs of the building, as they are related to financing. These costs can be fully deducted as advertising expenses from rental and leasing (line 37 "fundraising costs") in the year of payment (2009).

I hope this gives you a first overview.

Best regards,

Wander
Tax consultant