Income from subletting main residence vs. expenses for temporary second residence
January 14, 2022 | 40,00 EUR | answered by Steuerberater Bernd Thomas
Dear Sir or Madam,
Due to a long-term construction site near my apartment, I have temporarily sublet my apartment (for 8 months) and have rented a "replacement apartment" in the same city during this time because the construction noise became too much for me.
I receive 700 euros as sublet rent.
The rent for the "replacement apartment" is 800 euros.
How should I proceed with regard to tax return in this case?
Of course, this is not a "professionally motivated temporary relocation" to another city (necessary double household management). I decided to do so due to personal circumstances (construction site and noise).
The "rental income" amounting to 5,600 euros was not generated with the intention of making profit, as I did not benefit from it, on the contrary.
In the tax software, I can enter income and expenses related to rental property - however, I understand that I can only enter the costs that have arisen in relation to the sublet apartment (utilities, etc.).
I would like to avoid paying tax on the income from subletting, as I am clearly paying a high rent for a different property in the same city for personal reasons (construction noise from a long-term construction site).
Should I still enter this in the "double household management" section or is there another way to handle this situation?
Thank you.
Dear questioner,
I am happy to answer your inquiry based on the information provided in a preliminary consultation on frag-einen.com. The response is based on the facts you have provided. Missing or incorrect information can affect the legal outcome.
A double household management does not seem to be present, as the move was not made for professional reasons; there are also no other reasons for a professional necessity of the costs apparent from the facts. The expenses for the replacement apartment are therefore expenses of private life and not tax deductible.
Subletting the existing apartment results in rental income, which is offset by expenses (advertising costs). Therefore, you should report the rental income minus the costs of the sublet apartment in Annex V. This should include your own rent payments, advance payments for utilities, and possibly other costs (if it is real estate, depreciation, interest on external capital, etc. should be included). If there is no surplus, a tax return could be waived, but the process should be communicated to the tax office to avoid elaborate queries.
Sincerely,
Bernd Thomas
Tax consultant
Information according to DL-InfoV: Tax consultant Dipl.-Kaufmann (FH) Bernd Thomas, Tax consultant, Jöhrensstraße 1, 30559 Hannover, member of the Chamber of Tax Consultants Lower Saxony, membership number 146580, professional liability insurance with R+V Allgemeine Versicherung AG, Mittlerer Pfad 24, 70499 Stuttgart, insurance sum: 250,000 euros for each individual damage case; annual maximum benefit: 1,000,000 euros (for all damages in an insurance year); the professional regulations apply, in particular the Tax Consultancy Act (StBerG), implementing regulations for the Tax Consultancy Act (DVStB), professional code (BOStB), Tax Consultant Fee Ordinance (StBVV) (regulations can be viewed at: https://www.berufsrecht-handbuch.de/, http://www.gesetze-im-internet.de/stberg, www.gesetze-im-internet.de/stbvv/), the professional title of tax consultant was awarded in the Federal Republic of Germany.
