Maintenance expenses 3-year deadline
Dear Sir or Madam,
My husband and I purchased a semi-detached house (built in 1926) in NRW in 2010. We bought the property as an investment.
Here are the key dates:
Notarial purchase contract: 22.02.2010
Transfer of ownership in the land register: 19.04.2010
Payment of purchase price: 26.04.2010 (due on 30.04.2010)
Transfer of rights & obligations to us: 01.05.2010
Entry in the land register: 04.06.2010
Purchase price: €50,920 for the land and €86,580 for the existing buildings
From May 2010, before the tenants moved in September 2010, we renovated the guest toilet, bathroom, kitchen including renewing the water pipes (renewal of sanitary objects, new tiles (walls) and new tiles/laminate (floor)). The costs for the construction activities were just below 15% of the building acquisition value. These costs were also accepted as advertising costs by the competent tax office.
We now intend to energetically renovate the house in 2013 (new roof covering and insulation, new windows throughout the house, renewal of the entrance and side entrance doors, patching and painting the facade, replacing the wooden floors (ox blood planks) in the first and second floor, renewing the tiles and sanitary objects in the bathroom on the second floor, as well as sanding and sealing the interior staircase.
As far as I know, after the first 3 years following the acquisition of a property, expenses for maintenance are "unlimited" deductible as advertising costs and do not go into the depreciation. We would like to deduct the costs of these measures as advertising costs.
Question:
When does the 3-year period end in our case, and when can the various trades be commissioned or carried out? Is the notarial purchase contract, payment of the purchase price, transfer of rights and obligations, or entry in the land register decisive for the start of the 3-year period? Must the commissioning, execution, and invoicing be outside the deadline, or can, for example, the commissioning be done earlier?
Since this involves a significant amount, we would prefer not to fail due to deadlines. Please provide sources (legal texts, implementing provisions, judgments, etc.) for the deadline calculation so that we can argue against the tax office if necessary.
Thank you!
