Brokerage fee tax deductible?
When buying a property, there are many other costs in addition to the purchase price, which are referred to as ancillary costs. This often includes the brokerage fee, which some consumers believe is always tax deductible. In fact, however, it is only possible to deduct the brokerage fee from tax under certain conditions.
When the brokerage costs are tax deductible
In the vast majority of cases in which a house is bought or an apartment is rented, the brokerage fee is not tax-deductible.
- There is no possibility of considering the brokerage costs in the course of income tax as expenses when renting an apartment or a house which is private for Reside is being used.
- At the purchase Real estate brokerage costs cannot be deducted from a property if the buyer only uses the property to live in it. Since this is the case in most cases, most brokerage fees are not deductible.
- On the other hand, the expenses for the broker can be deducted provided that the acquired property is used by someone else, i.e. is rented out by the owner, for example. In this case, the use is commercial, so that the brokerage costs can be deducted in full.
Deduct brokerage fee even if it is partially used by third parties
In addition to the exclusive third-party use of the property, the broker's commission is also at least partially tax deductible if the house is partly used by the owner and partly rented out will. In this case, the part of the brokerage fee that is attributable to the commercially used part of the property can be deducted.
It is a known fact that when you take out a loan, the interest charged ...
- In this context, however, you have to make sure that the different types of use in the house are clearly separated. A typical example is that the house owner lives on the ground floor and the 1st Has rented floor.
- In the case of commercial use, not only the brokerage costs, but also many other ancillary costs can be deducted from the tax as expenses. This also includes, for example, financing costs and certain fees.
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