Depreciation of a partially rented condominium
August 31, 2011 | 20,00 EUR | answered by Michael Herrmann
Hello,
In 1999, I bought a 170 m² apartment with a large garden in a two-family house for 350,000 EUR, which I only used myself until 2007. Since 2008, I have been renting out 73 m² including garden use. Can I now claim depreciation (linear, 2%) in my tax return for 2009, and what amount do I need to enter as the acquisition value in my tax return program, from which the 2% will then be calculated automatically?
Thank you and kind regards!
Dear Questioner,
First of all, thank you for your inquiry, which I would be happy to answer based on the information provided and in the context of your initial consultation. The response is based on the facts presented. Missing or incorrect information about the actual circumstances can affect the legal outcome.
You must first deduct the share for the land from the acquisition costs (purchase price, notary, land register, and court fees). If this is not separately specified in the purchase contract, which is usually the case, the share must be estimated. The ground value (1999) of your municipality can be used for this purpose. This value is determined from sales in the area. Building experts or real estate agents can provide information on this.
The remaining amount calculated is the depreciable building acquisition costs. This amount is divided according to the living area. The part allocated to the rented living area (73/170) is the basis for depreciation. Note that you cannot claim depreciation for the period 1999-2007 (9 years). The depreciation period is therefore not 50 years but only 41 years.
I hope that these details have provided you with a sufficient overview of the situation in the context of your inquiry and this initial consultation.
Sincerely,
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax consultant
