What tax obligations do I have as a landlord or lessor?
February 25, 2024 | 40,00 EUR | answered by Petra Höfer
Dear tax advisor,
my name is Jonas Schäfer and I have been a landlord of several properties for several years. Lately, I have noticed that the tax requirements and obligations related to the rental and leasing of properties are becoming increasingly complex. I am unsure if I am correctly fulfilling all relevant tax regulations and obligations.
Currently, I regularly generate rental income, but I am not exactly sure which expenses I can claim for tax purposes and how I should properly document my income and expenses. I am worried that I may be making tax errors and risking back payments or penalties. I want to ensure that I fully comply with my tax obligations as a landlord and do not miss out on any tax benefits or reductions.
Therefore, my question to you is: What tax obligations do I have as a landlord or lessor? Which income and expenses do I need to report in my tax return? Are there any tax advantages that I can benefit from as a landlord? How can I best organize my tax affairs to avoid errors and meet my tax obligations?
Thank you in advance for your support and advice.
Sincerely,
Jonas Schäfer
Dear Mr. Schäfer,
Thank you for your inquiry regarding the tax obligations related to the rental and leasing of properties. As a tax advisor specializing in this topic, I would like to assist you and provide you with all relevant information.
As a landlord or lessor of properties, you have various tax obligations that you must fulfill in order to avoid any tax errors. The most important obligations include accurately recording and documenting your income and expenses, timely filing your tax return, and complying with tax regulations and obligations.
In your tax return, you must declare all income from the rental or leasing of properties, including rental income, utilities, possible operating cost settlements, and other income. On the expenditure side, you can claim costs for the maintenance and repairs of the property, insurance premiums, management fees, loan interest, and depreciation, among others. It is important to properly document all expenses and keep receipts to be able to prove them in case of a tax audit.
As a landlord, you can benefit from various tax incentives that can help reduce your tax burden. These include depreciation of the property acquisition costs, the possibility of lower taxation on private sales transactions when selling a rented property, and the ability to claim deductible expenses.
To organize your tax affairs optimally and avoid errors, I recommend carefully collecting and organizing all relevant documents, keeping regular records, staying informed about current tax changes, and seeking professional assistance if necessary. A tax advisor can help you fulfill your tax obligations, take advantage of tax benefits, and minimize tax risks.
I hope this information has been helpful to you, and I am available to answer any further questions you may have.
Best regards,
Petra Höfer
