Local Rent Comparison Values
May 30, 2010 | 20,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
We have rented to close relatives.
1. Does the tax office have the obligation to inquire about the rental amount from a different tax office for comparable properties, where we can only name the landlord, but he does not want to provide us with a rental agreement as proof that our rent is customary, and if so, where is this stated?
2. There is no rent index in our area and even with websites like Immoscout, we cannot find a comparable property, as it is a single-family house. How can we still prove that the rent we have agreed upon is reasonable?
3. The additional charges are also being examined to see if they have been allocated appropriately. For example, we did not allocate the maintenance of the heating system. Is this amount really to be included in the consideration of reasonableness?
Dear client,
Thank you for your inquiry, which I would like to answer based on your information and in the context of your commitment within a first consultation as follows:
The comparison with the local rent is to be carried out based on the gross rent, i.e. the additional costs are included. This means that the lower the additional costs that are passed on to the tenants, the greater the risk that the deductible advertising costs will be reduced.
For the discounted rental of a property, there is a so-called rent range. Within this rent range, the local rent will be located. Therefore, the lowest value within a rent range can be used as the local rent.
Local rents are comparative rents that are achieved for apartments of the same type, location, equipment, and year of construction in the open market. If the local rent cannot be determined or is difficult to determine, then a rental value report by an expert is advisable. You should go down the path of obtaining a report if an agreement cannot be reached with the tax office.
I hope that my explanations have been helpful to you.
Kind regards,
Ulrich Stiller
Tax consultant/Dipl. business economist
