Anyone who uses real estate as an investment, or who fulfils your dream of owning a home, can save taxes on both sides. In the case of investments, there are even many possibilities for this, so it is worth thinking about. At the beginning, the acquisition costs can already be claimed and depreciated at the tax. Acquisition costs arise when purchasing the property. However, it is important that these can only be deducted for tax purposes at a certain percentage of the purchase price and only for one year.
EXKURS;In the investment real estate segment or transactions in the million segment, many properties are handled in the share deal procedure. Since there is no land register sale, but only a brokerage of shares in the company, no real estate transfer tax is payable.
Other ways to deduct the cost of the property for tax use:
- Maintenance and maintenance costs
- Administrative expenses
- Costs of waste collection
- Caretaker costs
- Assembly and repair work
Important: Costs that do not relate directly to the property cannot be deducted. In this way, it is assumed that soil surface cannot be weared off and thus does not lose its value.
Info: Depreciation is made in Appendix V of the tax return under special depreciation.
If you are not sure, you can hire a tax advisor who will keep an eye on all possible depreciation and tax savings. The owner’s capital and financing naturally also play a role in taxes, as does the nature and condition of the property itself.
Special write-offs may also include special cases, such as those for listed properties or listed buildings. Here, the state consciously supports the maintenance effort and the time investment in these properties. The preservation of historic buildings is also supported by the state. In this way, the renovation costs incurred can be deducted over 12 years. However, in order to be able to use these depreciations, the property must have been purchased before various renovation works. If these are already in progress, tax advantages are no longer possible.