If you use your property privately as a real estate buyer, you cannot claim the purchase or other acquisition costs from the tax office. Because in the case of personal use, neither the purchase price of the building and land nor the real estate transfer tax or the notary costs are tax deductible.
How can I deduct real estate transfer tax?
The real estate transfer tax is one of the additional purchase costs. In tax terms, this means that YOU include the tax in the purchase price of the property. This total amount is then deducted from tax by way of depreciation over the years – year after year, euro for euro.
Which additional purchase costs are tax deductible?
If you buy the property for private use, the additional purchase costs are unfortunately not tax-deductible. However, you can deduct the real estate transfer tax, the notary and land register costs as well as the brokerage costs for tax purposes if you rent out the property or use it commercially.
When can I deduct the real estate transfer tax?
However, such income is part of the purchase costs. This means that YOU are not allowed to fully deduct the real estate transfer tax paid as income-related expenses. Instead, you have to write off the real estate transfer tax together with the purchase price of the property over the useful life.
Can you omit notary fees from the tax?
Notary costs incurred by registering a mortgage in the land register can be deducted as business expenses if the property purchased is part of the business assets. On the other hand, they are deductible as income-related expenses if the purchased property is added to private assets.
Where can I deduct property tax?
The property tax is deducted as income-related expenses in the tax return in Appendix V – income from renting and leasing. Income-related costs in connection with the rental include renovation and maintenance costs, ancillary costs and other ongoing operating costs
What tax deductions can I make for home ownership?
Brokerage fees, property tax, ancillary costs, financing interest: landlords can deduct these and other costs of a condominium from their taxes. On the other hand, people who live in their property themselves do not benefit from these tax advantages
Which additional purchase costs are immediately deductible?
Ancillary costs that are not directly related to the property, such as notary fees for registering the land charge for external financing, are immediately deductible income-related expenses.
When is real estate transfer tax deductible?
However, such income is part of the purchase costs. This means that YOU are not allowed to fully deduct the real estate transfer tax paid as income-related expenses. Instead, you have to write off the real estate transfer tax together with the purchase price of the property over the useful life
Are brokerage expenses tax deductible?
Renting: You can deduct the agent’s commission If YOU commission an agent to broker a rental property for you, YOU as the landlord can claim the commission for tax purposes. However, not as an advertising expense. In such a case, the brokerage fee is one of the incidental acquisition costs
Can I omit notary fees from the tax?
Example: Notary costs were incurred when purchasing a property. The notary costs are part of the ancillary acquisition costs and can be written off together with the acquisition costs.
Where do I state notary costs in the tax return?
When it comes to registering a mortgage or land charge for the rented property, the notary costs are considered financing costs. Then YOU must state the notary costs as income-related expenses in the “Renting and leasing” appendix.
Are notary fees exceptional burdens?
Indirect expenses such as e.g.