VIDEO: Calculate the tax on rental income correctly

If you rent a property, be it an apartment building or a granny flat in your own used residential building, you receive income from renting and renting within the meaning of income tax law Lease. Appendix V must be completed for this purpose. Use the list of relevant information as a guide.

The rental income is offset by the rental expenses

• Keep all documents and bills on. Keep a record of all the expenses you incur for your rental property.
• Compile all rental income and rental expenses at the end of the calendar year. The rental expenses are your income-related expenses. If these are higher than your rental income, you will make corresponding losses from the rental.

Record cold rent and ancillary costs

• Please note that you not only have to pay the basic rent, but also the rent levies for electricity, water, gas, garbage collection, street cleaning and property tax, etc. have to post on the income side. Conversely, you enter the expenses you have made in this regard on the expenditure side.
• Note that you have tenant subsidies that allow the tenant to contribute to the cost of the property involved and which are offset against the rent in the year in which the tenant received the subsidies has paid. However, if the tenant participates in the maintenance costs with his grants, you will not generate any taxable income.
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Tax on rental income - this is what you should be aware of

Are you one of the lucky people who own a home? Is this for ...

• Make sure that you include all possible advertising expenses. This includes all financing costs, administration, operating and maintenance costs and everything else coststhat are directly related to the rental.

Above all, depreciation and interest on debt determine the tax

• Forget that depreciation (Afa) not. Think about whether you would prefer to use the declining balance or the straight-line depreciation.
• If you have financed the property, you can claim the loan interest as income-related expenses in full. If you rent out a granny flat in the dormitory you use yourself, these are to be calculated on a pro-rata basis.
• Note the possibility of granting administrative rights and the so-called fraud right (rent) to only one of the co-heirs in a community of heirs. All other co-heirs are not a party to the rental agreement. This route is advisable if you run the risk of being subject to income tax solely because of the rental income.
• The amount resulting after offsetting the rental income with the rental expenses is yours Profit from the rental. Together with your other income, it determines your taxable income. Read off the resulting tax liability from the income tax table.

This is how you get the result

• Use one as a guide to calculate profit Sample form with calculation function.
• The tax structuring options for rented properties are diverse. Please understand this article only as a guide and let us advise you on tax issues.