How can I carry out my utility bill statement correctly for tax purposes?
January 10, 2022 | 40,00 EUR | answered by Petra Höfer
Dear tax advisor,
My name is Lorenzo Kroll and I have been involved in the rental and leasing of properties for several years. In this context, I have encountered recurring problems regarding the tax correctness of my incidental expenses statement. I have some uncertainties regarding the deductibility of certain costs and want to make sure that I am doing everything correctly to avoid any tax payments.
Currently, I am preparing my incidental expenses statement based on the actual costs incurred through the rental. I take into account both operating costs such as water, heating, and electricity, as well as maintenance and management costs. However, I am unsure about which costs are exactly deductible and which are not. I also wonder if certain expenses, such as repairs or renovations, can be fully deducted from taxes immediately or if they must be depreciated over several years.
I am also concerned about potential audits by the tax office and want to ensure that my statement is complete and correct to avoid any legal consequences. Therefore, I would like to know from you how I can carry out my incidental expenses statement correctly for tax purposes and what points I should pay special attention to in order to avoid any mistakes.
Can you provide me with specific tips and recommendations on how I can optimize my incidental expenses statement and make it tax compliant? I would greatly appreciate your support and expertise in this area.
Thank you in advance.
Best regards,
Lorenzo Kroll
Dear Mr. Kroll,
Thank you for your inquiry and your interest in a tax-compliant ancillary cost statement in the context of your rental and leasing of real estate. It is understandable that you are concerned about the correct deductibility of your costs and want to avoid legal consequences. In the following, I will give you some tips and recommendations on how to optimize your ancillary cost statement and make it tax-compliant.
First and foremost, it is important that you carefully document all costs incurred by the rental. This includes operating costs such as water, heating, and electricity, as well as maintenance costs, administrative costs, repairs, and renovations. It is important that you keep all receipts and invoices to be able to prove, in case of an audit by the tax office, that the costs have actually been incurred.
When it comes to the deductibility of costs, there are some points to consider. Operating costs such as water, heating, and electricity can generally be fully deducted from taxes. Maintenance costs, repairs, and renovations are also generally deductible. However, you need to differentiate whether it is maintenance measures that can be claimed immediately as advertising costs, or modernization and improvement measures that must be depreciated over several years.
To avoid errors and to carry out your ancillary cost statement in a tax-compliant manner, I recommend seeking professional help from a tax advisor like myself. A tax advisor can help you identify all deductible costs, optimize the tax aspects of your ancillary cost statement, and support you in case of any audits by the tax office.
In summary, it is important that you carefully document all costs, assess the deductibility of costs correctly, and, if necessary, seek professional help to make your ancillary cost statement tax-compliant. I hope these tips are helpful to you and am available for any further questions.
Best regards,
Petra Höfer
Tax Advisor
