What rights and obligations do I have as a landlord from a tax perspective?
February 7, 2022 | 40,00 EUR | answered by Petra Höfer
Dear tax advisor,
I hope you can help me with my concerns. My name is Benjamin Czakaj and I have been renting out a property for some time now. So far, I have not delved deeply into the tax aspects of being a landlord and I now have some questions.
Currently, I do not fully understand what rights and obligations I have as a landlord in terms of taxes. I have heard that I can deduct certain expenses for tax purposes, but I am not sure exactly what they are and how to correctly report them. Additionally, I am concerned that I might make mistakes in my tax return and end up having issues with the tax authorities.
I would like to know what expenses I can deduct as a landlord for tax purposes and how I should report them in my tax return. Are there specific forms or documents that I need for this? Are there also specific tax benefits that I can take advantage of as a landlord?
Furthermore, I am interested in potential risks or pitfalls that I should be aware of as a landlord in terms of taxes. Are there specific tax regulations that I must adhere to in order to avoid problems with the tax authorities?
I would greatly appreciate your expert advice on this matter and hope that you can assist me with my questions.
Thank you in advance.
Best regards,
Benjamin Czakaj
Dear Mr. Czakaj,
Thank you for your inquiry and interest in tax aspects related to renting out your property. As a tax consultant specializing in rental/leasing, I am here to assist you and will answer your questions as comprehensively as possible.
As a landlord, you have various rights and obligations in terms of taxation. Tax-deductible expenses include, for example, maintenance and repair costs, administrative expenses, property tax, insurance premiums, interest on loans used to finance the property, and depreciation on the building and furnishings. These expenses can be claimed as deductions in your tax return, reducing your tax burden.
To accurately report these expenses, you should collect and keep receipts and invoices. These serve as evidence for the tax authorities. To report the deductible expenses in your tax return, you will need the "Anlage V" form (Income from Rental and Leasing). Here, you enter all relevant expenses and claim your tax-deductible costs.
As a landlord, you can also take advantage of certain tax benefits, such as depreciation opportunities for the property and furnishings. Through depreciation, you can deduct the acquisition or production costs over a certain period, reducing your tax liability.
However, there are also risks and pitfalls that landlords should be aware of. It is important to comply with tax regulations and rules to avoid issues with the tax office. This includes correctly reporting and accounting for income from rental and leasing, as well as timely submission of the tax return.
In conclusion, it is important for landlords to understand the tax aspects of renting out property and accurately report relevant expenses. I am available for further questions and individual consultation.
Best regards,
Petra Höfer
