Tax deductibility of renovation costs!!!!
January 15, 2014 | 25,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
I have owned a condominium for over 10 years. My parents used to live in it. Now they have both moved to a care home and the apartment is being renovated, while it is vacant. It will be rented out afterwards.
How can I deduct the renovation costs from taxes before renting it out, or how is the tax deductibility of renovation costs regulated here?
If the costs are fully deductible, can they be spread out over several future years in the tax return?
Dear seeker of advice,
Thank you for your inquiry, which I would like to answer based on your information and in the context of your situation as follows:
The renovation costs you mentioned are deductible as advertising costs for rental and leasing income, as you intend to rent out the apartment.
To do this, you must fill out Annex V to the income tax return.
Major renovation costs (maintenance expenses) for buildings/apartments used for residential purposes that belong to private assets can be evenly distributed over 2-5 years according to § 82b EStDV. Whether and to what extent the distribution takes place depends on your personal tax progression and must be calculated BEFORE submitting the income tax return.
I hope my explanations were helpful to you.
Kind regards,
Ulrich Stiller
Tax advisor
... Are you also interested in this question? 
