How can I declare my rental income and leasing income in my tax return?
January 25, 2023 | 30,00 EUR | answered by Anneliese Schaaf
Dear tax advisor,
My name is Dennis Bergner and I have a question regarding my tax return concerning my income from renting and leasing. This year, I have rented out a property and receive regular income from rental payments. I am unsure of how to correctly report this income in my tax return and what tax aspects I need to consider.
I have always done my tax return independently so far, but I am having some difficulties in recording the income from renting and leasing. I am concerned that I may make mistakes and therefore experience tax disadvantages. Therefore, I would be very grateful if you could help me with this question.
Could you please explain to me what information I need to provide in the tax return in order to correctly record my income from renting and leasing? Are there any specific forms or attachments that I need to fill out? And what other tax aspects should I consider to avoid making mistakes?
I would greatly appreciate it if you could assist me with this question and provide possible solutions to submit my tax return correctly and on time regarding my income from renting and leasing.
Thank you in advance for your support.
Kind regards,
Dennis Bergner
Dear Mr. Bergner,
Thank you for your inquiry regarding your rental income in your tax return. As a tax advisor, I would like to help you accurately report the necessary information and consider any tax aspects.
First and foremost, it is important that you declare your rental income in your tax return. There are specific forms and attachments that you need to fill out. Typically, you would use Attachment V (Income from Rentals and Leases) of the income tax return for this purpose. Here, you would enter all relevant information about your rented property, such as the amount of rental income, deductible expenses, and depreciation.
Deductible expenses include any expenses related to the rental, such as repairs, management fees, insurance, or interest on loans. These expenses reduce your taxable rental income and can be claimed as deductions for tax purposes. It is important to keep all receipts and records of your deductible expenses in case of an audit by the tax authorities.
You should also consider possible depreciation for your rented property. This involves the tax consideration of the depreciation of your property over its useful life. Depreciation also reduces your taxable rental income.
Furthermore, it is important to separate your rental income from your other income in the tax return. Ensure that all necessary information is complete and accurate to avoid any errors.
If you are unsure or have further questions, I recommend seeking advice from a tax advisor who can provide personalized guidance. I am also available for a personal consultation if needed.
I hope this information has been helpful to you and wish you success with your tax return.
Best regards,
Anneliese Schaaf
