Loss carryback possible?
February 12, 2012 | 20,00 EUR | answered by Michael Herrmann
Loss carryback possible?
I have to do the tax return for my deceased mother-in-law.
Tax 2009 (data from the current assessment)
Income from capital assets: €2,337
Rental income: €9,040
Life annuity: €10,022
Taxable income: €19,389
Tax assessed: €572
Tax 2009 (data from WISO program before submission to tax office)
Income from capital assets: €0
Rental income: -€19,055 (Negative due to renovation of the rental property!!!)
Life annuity: €2,397 (low due to high medical expenses)
Taxable income: €0
Tax assessed: €0
Question:
Due to the renovation of the rental property, there are negative rental income of approximately €19,055. Is it advisable to apply for a loss carryback to the tax year 2009 in order to receive a refund of the paid tax of €572? If YES, in what amount?
Thank you and regards
Dear inquirer,
First of all, thank you for your inquiry, which I would be happy to answer based on the information provided and in the context of your initial consultation. The response is based on the facts described. Missing or incorrect information about the actual circumstances can affect the legal outcome.
I assume that the loss occurred in the year 2010, as otherwise the question would not make sense.
Losses that cannot be offset when determining the total amount of income for the current calendar year can be deducted from the total amount of income of the immediately preceding assessment period up to an amount of 511,500 euros (spouses: 1,023,000 euros) before special expenses, extraordinary burdens, and other deduction amounts.
As a result, the loss in 2010 will first be offset against the remaining positive income, and only any remaining loss beyond that will be carried back. It should be noted regarding your situation that annuities in 2010 will be fully offset. Medical expenses are extraordinary burdens to a limited extent. They do not reduce income from pensions.
The deduction will be automatically carried out up to the maximum possible loss carryback. This means that in this case, no separate application is necessary. However, you can limit the loss carryback upon request. Since your mother-in-law has already passed away, limiting the carryback does not make sense, as the remaining loss volume cannot be transferred and will be lost anyway in the future. The exact amount of the loss to be carried back cannot be determined based on the information provided.
I hope that these details have provided you with a sufficient overview of the situation within the scope of your inquiry and this initial consultation.
Sincerely,
Michael Herrmann
Tax Advisor
Diploma in Financial Management (FH)
