What tax benefits do I have as a landlord of commercial properties?
May 16, 2022 | 40,00 EUR | answered by Johann Lauer
Dear Tax Advisor,
My name is Fanni Schulz and I am a commercial property landlord. In my portfolio, I own several office buildings that I rent out. Over the past few years, I have noticed that the tax burden on my rental income is increasing and I am wondering if there are any tax advantages that I can take advantage of as a landlord of commercial properties.
Currently, I am paying high taxes on my rental income, as it is classified as income from renting and leasing. I am concerned that the tax burden could continue to rise, potentially reducing the profit I make from my rentals. Therefore, I would like to know if there are ways to optimize my tax situation and benefit from tax advantages as a landlord of commercial properties.
What tax advantages do I have as a landlord of commercial properties and how can I use them to reduce my tax burden and maximize my profit? Are there specific depreciation options or tax breaks that I can take advantage of as a landlord of commercial properties? I would greatly appreciate your expertise and advice on this matter.
Thank you in advance for your help.
Best regards,
Fanni Schulz
Dear Mrs. Schulz,
Thank you for your inquiry and your interest in tax benefits as a landlord of commercial properties. It is understandable that you are thinking about your tax situation and looking for ways to reduce your tax burden and maximize your profit. As a tax advisor with extensive experience in the area of renting and leasing commercial properties, I can show you some tax benefits that you can take advantage of as a landlord.
First of all, it is important to know that rental income from commercial properties is considered rental and leasing income. This income is subject to income tax and must be reported in your tax return. However, there are various ways to optimize your tax situation and benefit from tax advantages.
One important way to reduce your tax burden is through depreciation of buildings and acquisition costs. As a landlord of commercial properties, you can depreciate the buildings and acquisition costs over the useful life. These depreciations reduce your taxable profit and therefore your tax burden. In addition, you can also claim maintenance and modernization costs for tax purposes to reduce your income.
Furthermore, there are special tax advantages for landlords of commercial properties, such as the possibility of tax relief for maintenance expenses. Here, you can deduct maintenance expenses for your commercial properties directly as advertising costs and thus reduce your tax burden.
Additionally, there is also the possibility to consider VAT in the rental of commercial properties. Depending on the type of rental and the tenant, tax benefits can be utilized to optimize your tax situation.
It is advisable to seek advice from an experienced tax advisor to analyze your individual tax situation and take advantage of the best possible tax benefits as a landlord of commercial properties. I am happy to provide you with a personal consultation and help you reduce your tax burden and maximize your profit.
I hope this information is helpful to you and I am available to answer any further questions you may have.
Sincerely,
Johann Lauer
