Depreciation for an inherited house
August 4, 2016 | 30,00 EUR | answered by Dipl.-Kfm. Frank-Olaf Illiges
My wife has inherited a farmhouse from her parents, which has always been used for personal use. Therefore, depreciation has never been claimed. According to the available documents, the house was built in 1955. We would like to rent out the house now. From my point of view, depreciation can no longer be claimed, as the depreciation period of 50 years has been exceeded. Is this correct, even though depreciation has never been claimed before and the house has never been rented out?
Kind regards
Dear inquirer,
Thank you for your inquiry, which I will gladly answer while taking into consideration your effort and the rules of this platform.
Please note that my explanation is based on the facts 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.
The basis for depreciation after the owner's use of the residential property is the original acquisition or production costs of the building minus the depreciation for the period of owner's use (R 7. 4 Abs. 10 sentence 4 Income Tax Guidelines (EStR)). With an annual depreciation rate of 2.0% (= useful life of the building = 50 years), the basis for depreciation of the building in the calendar year 2016 is therefore zero. Therefore, you cannot claim depreciation as operating expenses when determining the income from renting and leasing the residential property in the calendar year 2016.
Best regards,
Dipl.-Kfm. Frank-Olaf Illiges
Tax consultant
Ringstraße 98
33378 Rheda-Wiedenbrück
Phone: 05242/4055666
Fax: 05242/4055677
e-mail: office@illiges-steuerberatung.de
Website: www.illiges-steuerberatung.de
