How can I reduce my tax burden as a landlord through targeted investments?
October 15, 2022 | 50,00 EUR | answered by Johann Lauer
Dear tax advisor for rental / leasing,
My name is Hildegard Stamm and I am the landlord of a property. I have been renting out this property for several years and have consistently had to pay high taxes. I am wondering how I can reduce my tax burden as a landlord through targeted investments.
Currently, I am paying high taxes on rental income, and I am concerned that I may be giving too much to the state. I have heard about ways to reduce tax burdens through investments, but I am unsure of the exact steps I should take.
My property is in good condition, but renovation or modernization may be necessary. I am wondering if I can lower my tax burden through targeted investments in the property and what specific measures would be suitable for this. Are there specific funding programs or tax benefits that I can take advantage of? How can I claim my investments for tax purposes and what documents do I need to have ready for this?
I would appreciate it if you could provide me with specific tips and advice on how I can reduce my tax burden as a landlord through targeted investments. What options are available to me and how can I best utilize them to improve my tax results?
Thank you in advance for your support and expertise.
Sincerely,
Hildegard Stamm
Dear Mrs. Stamm,
Thank you for your inquiry regarding reducing your tax burden as a landlord through targeted investments. It is understandable that you are concerned about your tax payments and are looking for ways to optimize them. I am happy to provide you with detailed information and tips on how you can lower your taxes through investments in your property.
One way to reduce your tax burden as a landlord is to make targeted investments in the modernization or renovation of your property. Through these measures, you can not only increase the value of your property, but also take advantage of tax benefits in the form of depreciation and special wear and tear deductions. Investments in energy-efficient renovations, barrier-free conversions, or improving the quality of living can be tax-favored.
It is important that you keep the appropriate receipts and invoices for your investments in order to claim the expenses for tax purposes. Additionally, you should check if certain measures are eligible for funding programs or tax benefits. For example, there are subsidies for energy-efficient renovations through KfW or tax benefits under § 7h EStG for monument conservation measures.
To optimize your tax burden as a landlord, I recommend seeking advice from an experienced tax advisor. They can provide you with individual tips and advice on which investments are sensible for your property and how you can best utilize them for tax purposes. Together, you can develop a strategy to optimize your taxes and improve your tax results.
I hope this information is helpful to you and supports you on your journey to reducing your tax burden as a landlord. If you have any further questions, please feel free to contact me, and I wish you success with your investments.
Sincerely,
Johann Lauer
Tax advisor for rental / leasing properties
