Rental income only in the tax return?
April 18, 2014 | 25,00 EUR | answered by Dipl.-Kfm. Frank-Olaf Illiges
I inherited a multi-family house in 2013 together with my mother and two sisters. As part of the property is rented out with sales tax, I have already applied for a tax number and submitted a monthly sales tax return.
Now I have to inform the tax office about the rental income minus expenses. I have prepared a determination declaration using WISO, entered all income and expenses, and listed all owners with their respective shares.
Do I need to report this income again in my "private" tax return, or are the details in the determination declaration sufficient? Also, where do I or the other owners report "travel expenses" related to the property? We all do not live directly in the city where the property is located, but we have to visit regularly. Should these travel expenses be reported in the "private" tax return or in the determination declaration?
Thank you for your help.
Dear inquirer,
Thank you for your inquiry, which I will gladly answer taking into account your effort and the rules of this platform.
Please note that my explanation is based on the facts presented, and that adding, omitting, changing information, or the ambiguity of information can change the tax result. Please be aware that this cannot replace individual comprehensive advice.
In addition to the VAT return, the joint property ownership (= community of heirs) is obliged to submit a determination declaration with its own attachment V to the tax office regarding rental and leasing income, in the district where the property is located.
Based on the determination declaration, the rental and leasing income is determined separately for the joint property ownership and uniformly for all members of the joint property ownership in a basic assessment notice. This ensures that the income is determined only once and in the same way for the members of the joint property ownership.
The uniformly determined rental and leasing income of the individual members will then be automatically taken into account in the income tax assessment of each individual member by the tax offices of their place of residence. The tax office in the district where the property is located will inform the respective tax offices accordingly. Therefore, the individual members of the joint property ownership should not report rental and leasing income again in their personal income tax returns.
Travel expenses of the individual members of the joint property ownership are considered special advertising costs. These expenses are not included in the determination of rental and leasing income of the joint property ownership, but should be entered in the determination declaration (Attachment FE 1, line 11) and individually assigned to the respective member of the joint property ownership (Attachment FE 1, line 11 for each participant). Therefore, travel expenses should not be reported in the personal income tax return.
Best regards,
Dipl.-Kfm. Frank-Olaf Illiges
Tax consultant
Am Wieksbach 55
33378 Rheda-Wiedenbrück
Phone: 05242/4055666
Fax: 05242/4055677
e-mail: office@illiges-steuerberatung.de
Website: www.illiges-steuerberatung.de
