In times of turbulent stock markets, defensive Alternative to equities are very much in demand. For many German citizens, the property is therefore number one investment.
The rental housing can pay for itself – particularly in urban areas, where the housing market is empty, swept, and the rental rates continue to rise. In these regions, despite high purchase prices, are often good returns.
the location of The object is a decisive criterion for the rate of return is in addition to the condition of the equipment and the rental potential. Landlords also benefit from favorable mortgage interest rates and lucrative tax advantages. This should, however, be always a nice side-effect, not a necessary condition.
anyone Who invests money in real estate, is from the Treasury
For investors rewarded a property for rent is an ideal tax-saving port. Investments of the Treasury with numerous tax rewards facilitation. Whether rehabilitation, modernization, or maintenance measures on the object are incurred with advertising costs, depreciation and amortization landlords can generate Mietverluste and, in turn, with other types of income, such as from an employee’s income, charge. The higher the personal progressive tax rate of the lessor, the higher the Savings. The gross-to-net calculator
a Particularly lucrative tax incentives to real estate owners also, if you rehabilitate a historic monument. In the context of the monument protection depreciation capital investors to 100 percent of the maintenance and modernisation costs of their income tax to deduct, however, limited to a period of twelve years.
four-year special depreciation to use
To the new rental space to create, investors will receive four years of high special depreciation and amortization. Those who in the period between 1.9.2018 and 31.12.2021 a planning application to start a housing construction project, or in this period, a new real estate is bought and leased, the tax incentives. The Treasury gives investors the special depreciation in addition to the General linear depreciation for four years, with five percent of the construction costs. Thus, can hit within the depreciation period of four years, about 28 percent of the costs for tax purposes to the book.
What is in the tax return in 2019, all tax-deductible, read the landlord here.
Annex V
investors can save with the rental of real estate taxes. In particular, depreciation and advertising costs, tax-reducing effect. Which is reflected in Annex V to all to book:
taxes down
rental income are taxable. With depreciation and expenses for maintaining the property a landlord can produce losses and other income, such as from an employee’s income, charge. For each rented object in a separate system, V, is due. So the tax burden:
Also interesting: hundreds of Euro drops save: the Federal government is planning massive tax cuts for 2021
tip 1: revenue
Who rents living space, whether house, condominium, vacation property or a room (e.g. under the rent (line 31)), must pay tax on the income. This also applies for the lease of a plot of land. To include the taxable income of the monthly rent (cold rent) and the levies (in addition to the costs of advance payments):. But also to rental prepayments, and fees for rental of advertising spaces, garages, Parking spaces as well as mobile radio antennas.
tip: Who stays to holiday guests or visitors leased, and not more than 520 euros, rent in the year, tax-free. Also tax-free the security Deposit (in full amounts) is usually. the system V, lines 4-11
tip 2: members
Who rents at reduced prices to close relatives, an apartment or a house, is also subject to the tax. The Treasury in return for the advertising costs, deduction. 100 percent of the expenses are deductible only if the rent is at least 66 percent of the local rent (BFH, Az. IX R 44/15) is. The rent is too low, reduces the tax of the advertising expense deduction.
tip: the landlord must sign the lease as among Strangers is common (written contract, duration of contract, in addition to costs, payroll, etc.). Tip: the children can ride, the rent from the support they receive from parents (BFH, Az. IX R 39/99). Also, the payment of rent from a one-time monetary gift to the parents is possible. Parents can offset the rental also in advance of the maintenance payment and only the difference as a Cash maintenance transfer (BFH, Az. IX R 30/98). the system V, lines 8-12
family ties benefits
Who rents a property to family members, must be at least 66 percent of the local rent demand. The landlord may then deduct their advertising costs in full. Income tax act
tip 3: real estate exchange
rational reasons for a real estate exchange Are economical, accepted by the tax authority, a cross-rental. Example: the apartment because of young talent to small or a change of location, because the access to work is cheaper, the Treasury of the apartment exchange is usually. But a word of caution: By design, abuse of the office is against it, if only because of the tax savings exchange side is rented. The BFH, however, has approved the following rotation: Who rents a house to his parents at arm’s length, and even free of charge in a property of the parents is alive, you can make the rental losses claimed (BFH, Az. IX R 5/00).
tax free sale?
a seller of leased real estate (investment objects) must pay tax on the sale profit when you sell your house or apartment within ten years after the acquisition. It is a so-called speculation business. Only when the speculative period of ten years has expired, the sale to private individuals tax-free. Trick: Who inhabited the property in the sale year, and in the two years before that, even, they can sell tax-free. The ten-year speculation period does not apply in these cases.
tip # 4: a hobby
attention! The purpose of earning income, is missing from the Treasury of the hobby, and granted no tax deductions. The property is rented permanently, landlords have nothing to fear (BFH, Az. IX R 80/94). In the case of a temporary rental of the Treasury checks, but a hobby as well as for the special cases of vacancy, luxury apartments, holiday apartments, cheap rent, and commercial properties. the system V, lines 8-11, 22, 52
tip 5: empty
Is a property longer empty, you must make a property owner, your rental intent to be credible, advertising costs (in advance) allowed to sell to. The proof succeeds if the landlord can prove the intensive search for tenants (advertisements, broker) or the space-times to events such as flood, fire or storm damages are based. Tip: Have loss of rent property owners fault, you can reduce the tax significantly, even in retrospect. Ver tenants have the right to request a remission of the levy. The tenants fall lazily around 50 percent, reduces the land tax by a quarter, with a total loss of rent even half (BFH, Az. II R 36/10). Important: the application deadline note – at the end of March. the system V, lines 8-11, 22, 52
What is defined is hardly a tenant knows… Our PDF guide you of your rights and obligations as a tenant and explains the rental price brake.To the PDF guide
tip 6: property for vacations and holidays
people Who have a vacation property that is exclusively rented out, can make all expenses as advertising costs (see check list on the left: “ABC”). Will rents the property, in part, even used, are the expenses only for the part of rent a Pro-rata tax deductible. The revenues of intent must demonstrate to the owner on the basis of a profit forecast over 30 years.
real estate Atlas 2020
In this PDF guide you will find everything that is Important to the topics of rent, the purchase price for condos and houses in 100 cities.
PDF guide
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