Do I have to pay taxes on my rental income even if I only sublet temporarily?
November 24, 2023 | 40,00 EUR | answered by Johann Lauer
Dear tax advisor,
My name is Theodor Gerdes and I am currently in a somewhat complicated situation. I own a property that I mostly live in myself. However, I rent out individual rooms to subtenants temporarily to cover my monthly expenses. Now I am wondering if I have to declare these rental income for tax purposes, even though they are only temporary.
I am not sure if, as a landlord in this case, I have to report the income from subletting in my tax return. I want to make sure that I comply with all legal regulations and do not have any issues with the tax authorities. Additionally, I am concerned that I may have to pay back taxes if I have mishandled the income.
Could you please explain to me if I also have to pay taxes on my rental income when I only sublet temporarily? Are there any specific tax-free allowances or regulations that I should consider in this case? What steps should I take to clarify my tax situation in regards to subletting and ensure that I am handling it correctly?
Thank you in advance for your help and advice.
Sincerely,
Theodor Gerdes
Dear Mr. Gerdes,
Thank you for your inquiry regarding the taxation of rental income from subletting. It is important that you are aware of your tax obligations to avoid issues with the tax authorities. In your case, where you primarily occupy your property and only occasionally sublet rooms, there are certain tax aspects to consider.
In Germany, rental income must be taxed, regardless of whether it is from permanent or temporary rental. This also applies to income from subletting individual rooms in your self-occupied property. The amount of taxes depends on various factors, such as the amount of rental income, deductible expenses, and other tax deductions.
However, there are allowances and regulations that can help you with the taxation of rental income. For example, you can claim deductible expenses to reduce your tax burden. These may include costs for renovation work, maintenance measures, insurance, and administrative expenses. It is important to properly document all relevant expenses and income to accurately fill out your tax return.
To clarify your tax situation regarding subletting and ensure compliance with all legal requirements, I recommend contacting an experienced tax advisor. A tax expert can help you review your income and expenses, explain the tax implications, and potentially find tax-efficient solutions.
I also recommend regularly documenting your rental income and staying informed about current tax developments to be able to consider any changes in legislation. By taking proactive steps and seeking professional assistance, you can ensure that you fulfill your tax obligations and avoid potential tax payments.
I hope this information is helpful to you. If you have any further questions or require more detailed advice, please feel free to contact me.
Best regards,
Johann Lauer, Tax Advisor
