Is a renovation tax deductible?
The scope in which a renovation is tax deductible depends on the property. Limited if you use it yourself as a household-related service, it reduces the tax burden in full if you rent it to a third party.
Include private renovation in the tax
- If renovations and all associated expenses for owner-occupied apartments were not tax-deductible until a few years ago, this situation has been changed.
- In the context of household services, craftsmen's services, including renovation work, are tax-deductible.
- The prerequisite for this is a proper receipt and payment of the tradesman's invoice on the account of the company that provided the service.
- You can only credit the work of the craftsman, not the material used. Therefore, the bill must be clearly structured. 20 percent of the invoice amount is deductible, up to a maximum of 1200 euros. Craftsman services also include those ride costs and rental costs for necessary machines.
- The renovation costs must always be declared for tax purposes in the year in which the invoice was paid. If the invoice was issued in December 2009, but the payment was not made until January 2010, this is the Deductibility given for 2010.
Tax-deductible house renovation - this is how it works
Over the course of a few years, maintenance work will have to be carried out on each house. …
In the case of third-party letting, more is tax deductible
- When you rent out a property, significantly more expenses are tax deductible. This also applies to commercial use.
- In both cases a renovation serves to secure the income. In one case it is income from renting and leasing, in the other case income as an entrepreneur.
- As a landlord or as a self-employed person, everyone is at your side when it comes to a renovation costs, including material, tax deductible. There is also no limitation.
- As with a private household, proper receipts must be presented.
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