date | theme

November 2, 2021 | Private divestment business after donation: How to save taxes!

December 1, 2021 | Leverage effect: return on debt-financed property purchase

10. December 2021 | Taxation of commercial real estate – 3 tax advantages

23. December 2021 | Real estate sale after divorce or with separated spouses – Attention tax trap!

21. January 2022 | Procuring production costs for real estate: carry out maintenance measures in a tax-optimized manner (this contribution)

Procurement-related production costs are regulated in § 6 (1) number 1a EStG. Accordingly, repair costs which can be deducted immediately are converted into merely depreciable production costs. This primarily concerns the purchase of real estate by natural persons and subsequent renovation measures. But also by way of the anticipated inheritance, land is often transferred partly for payment. The transferred properties are often leased properties for profit. If these are rehabilitated by the new owner, the question arises whether these maintenance costs constitute acquisition-related expenses and can therefore only be depreciated over a longer period of time. This article explains how you can carry out such repair measures tax-optimized.

As a private person, you buy a property and rent it out. Then you earn income from rent and lease. You can offset this income advertising costs. Advertising costs also include renovation costs, which can therefore reduce income. However, the question is how. A distinction must be made between the acquisition costs, maintenance costs and the acquisition-related production costs. Costs can only be depreciated for wear over a period of time. Expenditure that serves the preservation of an object can actually be written off sofrt. However, this does not apply if they are attributed to the purchase-related production costs. First of all, there is the question of what acquisition-related production costs actually are. These are regulated in § 6 (1) no. 1a EStG. Thus, purchase-related manufacturing costs are those that