How do I properly install a fitted kitchen?
January 26, 2013 | 25,00 EUR | answered by Wirtschaftsprüfer André Hintz
Hello,
I have installed an Ikea kitchen in the rented area with a stove, sink, dishwasher, washer-dryer, and freestanding refrigerator. Can I write off everything together with a 10% deduction? Or do I need to add the stove and sink to the production costs? Is a 10% depreciation correct? The kitchen cost a total of approximately 2,500 euros.
How do I deduct it correctly?
Can I also write off the shower enclosure (costing 500 euros incl. VAT) immediately? If so, over what period of time? Or as what?
I have a new build (2-family house). Purchase contract in 2010, completion and handover of the house by 30.07.2011. Rental from 1.10.2012. Is it correct that I have to apply the 2% depreciation to the invoices already paid (minus the land and object share that is self-used, etc.)? So for 2011, all invoices incurred in 2011 and for 2012 additionally the invoices that have been added. Is it correct that I can write off invoices up to 4,000 euros after the first 3 years - starting from the date of the purchase contract? - even if they are subsequent production costs. Or do I also have to include these in the 2% depreciation?
Sincerely
Dear questioner,
I would like to answer your question within the framework of an initial consultation and in accordance with the rules of the online portal, taking into account your fee contribution. My response is based on the situation you have described.
The kitchen and its electronic devices should be depreciated separately, unless they are considered as a single unit.
In my opinion, the general kitchen unit should be depreciated over a period of 10 years. The stove can be depreciated over 5 years, while the dishwasher, washer dryer, and refrigerator can each be depreciated over 7 years.
When it comes to the shower enclosure, it is important to determine whether it was a new purchase or a replacement. If it was a replacement of an old shower enclosure, it is considered immediate maintenance expenses. If the shower enclosure was newly purchased, I believe it should be depreciated over a period of 5 years.
Regarding the depreciation of the building, you need to differentiate between the completion date of the building and the date when the intention to rent it out existed. Depreciation can only be claimed from the moment (subject to proof by the taxpayer) when the intention to rent out the property existed, even during vacancies.
All costs incurred until the completion of a new building should be treated as construction costs, regardless of the year they were incurred. The 4,000 Euro simplification rule applies only to existing rental properties.
The useful life of the building begins from the moment of completion, but depreciation can only be claimed from the moment when the intention to rent it out existed. If there are additional invoices after the completion date, these are considered subsequent construction costs and should be included in the basis for depreciation.
If renovation costs exceed 15% (net) of the purchase price within 3 years of acquiring the house, they should also be treated as construction costs.
For any questions or further assistance, I am available via email.
I hope my explanations have been helpful and remain
Yours sincerely,
André Hintz
Tax advisor
Steuerberatung@andrehintz.de
