Tax advice for owners and landlords

introduction

Real estate represents the most important capital investment for many private individuals. At the same time, it presents significant tax challenges due to the numerous regulations that must be observed. Whether owner-occupied, rented out, or sold – each use brings different tax consequences. Those who maintain an overview of these regulations can not only gain legal certainty but also realize considerable tax advantages.

Income from renting and leasing

Those who rent out their properties generate income from letting and leasing according to § 21 of the German Income Tax Act (EStG). This income must be declared annually in the tax return. However, numerous expenses can be deducted from the rental income – such as maintenance, administration, mortgage interest, or depreciation. This often significantly reduces the taxable income.

Deductibility of costs

A particular focus is on the deductibility of advertising expenses. These include, among other things, repairs, modernizations, utility costs, and insurance. Travel expenses to the property can also be claimed for tax purposes. In practice, this often raises questions, as a distinction must be made between immediately deductible maintenance expenses and construction costs spread over several years.

Depreciation and tax advantages

Property owners can claim tax relief for the depreciation of their property. This so-called depreciation allowance (AfA) is a key tool for reducing the tax burden in the long term. Special regulations exist, particularly for new buildings, listed properties, or energy-efficient renovations, which offer additional depreciation options.

Real estate sales and speculation tax

When selling real estate, the so-called speculation period applies. Anyone who sells a property within ten years of purchase must generally pay tax on the profit – unless the property was used exclusively as their own residence or for their own residential purposes in the year of sale and the two preceding years. This period is a crucial factor for tax planning and can have significant financial implications.

Holiday apartments, special regulations, and speculation tax

Another important topic concerns holiday apartments or properties rented out on a temporary basis. Special rules apply here regarding the tax deductibility of advertising expenses and the distinction between this and a hobby. The question of the extent to which private use is permissible for tax purposes without jeopardizing deductibility is also of great importance.

Property tax and additional costs

In addition to income tax, property tax also plays a role. Owners are required to reassess their properties as part of the property tax reform. The allocation of ancillary costs to tenants is also clearly regulated from a legal and tax perspective. Mistakes in this area can quickly lead to conflicts or financial disadvantages.

Our services for property owners

We support you with all tax-related questions concerning your real estate. This includes preparing your income tax return with all income from renting and leasing, calculating depreciation, and documenting costs and investments. Furthermore, we advise you on matters relating to property sales, speculation periods, and the tax classification of vacation homes.

Our services for property owners

As a law firm, we value comprehensibility, transparency, and personal service. We are familiar with the tax intricacies associated with real estate and ensure that these are taken into account in all essential areas.

Our services

Accounting

Income tax

Income statement (EÜR)

Tax returns

Property tax

Industries
Specific advice