Tax model for rental/commercial/private use/photovoltaic
Dear Sir or Madam,
the following situation:
Since July 2010, I have been the owner of a three-sided courtyard with approximately 1 hectare of land.
This three-sided courtyard is intended to be used as follows:
The main house will be privately occupied by myself and my partner on 2 floors. Another floor will serve as a storage and office space for an online distribution business.
The barn is equipped with a 200sqm photovoltaic system, which will be commissioned in May 2011. The left part of the barn (about 210sqm) will be available for rental. The right part (approximately 250sqm) will be used as a private storage space and garden access.
In addition to two utility rooms and various storage options, the outbuilding has five residential units that are to be fully rented out. This amounts to a total of approximately 370sqm of living space.
Renovation and reconstruction work has been ongoing since the date of purchase. Funding has been applied for from the state, but a decision has not yet been made as the funding commission will only make decisions in August 2011.
I am currently a civil servant and a soldier on temporary contract/officer (6 years). My partner works as an employee at a spa and wellness facility in Hamburg. In August/September 2011, we will be moving into the described property, at which point my partner will resign from her current job and start her own online distribution business. Funding for business start-up has been applied for from the employment agency, but a decision has not yet been made as the final meeting to present the business plan is scheduled for June 2011.
The question now is, which tax model is most practical. The property will be used partly for commercial purposes, partly privately, there will be rental income, and the photovoltaic system (42kWp) will be operated as a utility without small business status.
Is it advisable from a tax perspective to establish a management company for the rental/property?
Is it advisable from a tax perspective to establish a limited liability company (UG) for the online distribution business, with the intention to later convert to a GmbH?
What are the tax consequences of a mixed-use property?
The purchase price of the property was paid without financing. The photovoltaic system is fully financed with a feed-in guarantee for 20 years and a payback period of 8 years. There is additional financing of 99,000 euros for the renovation.
How is the photovoltaic system treated for tax purposes when part of the self-consumption (4000kWh) is used for commercial purposes, part is used privately, and the rest is fed into the utility grid?
I am also interested in knowing which scenario would result in the lowest income tax burden for myself and my partner (not married). It is particularly important to understand to what extent depreciation of the purchase price and other aspects come into play in case of purely private use, and what consequences a mixed-use property may have.
Thank you.
Sincerely yours,
