Rental income includes all payments received from the tenant. In addition to rent, this includes, for example, water charges to the landlord, parking fees, income withheld from the security deposit, contractual penalty related to termination, interest due on late payment of rent and reminder fee, etc. Security deposit is not rental income and is not reported in the tax return.
Company fees paid, water charges and parking, internet connection and cable charges are the first part of the deductions from rental income. All consideration recognized in the housing company’s accounts are expenses deductible from rental income. If the consideration is not recognized in the housing company’s accounts, it is funded, in which case it is not an expense deductible from the rental income and is not reported in the tax return. This should always be checked with the property manager, as the often deductible consideration is also called financial consideration, which by no means that it is funded. The tax refund calculator is used heavily in this case.
The water charge and possibly other charges are therefore first recognized as income and then deducted as an expense. If the tenant fails to pay the rent and water fee, the owner of the apartment will still have to pay the water fee and it can be deducted. For empty months, the landlord does not have to pay the water fee, because the water is not consumed in the apartment but, if it has been paid, it can be reduced.
Next, all other costs directly attributable to the rental of the dwelling in question are recorded, which are freely specified in the additional information. These include home renovations, landfill fees, electricity bills, home appliance renewal costs, rental brokers’ fees, “rent-in” notification fees, credit check fees, using your own car to buy home appliances, attend home visits or attend general meetings (€ 0.25 / km 2018 and 2019), , the postage fee for the rent increase letter, the district court fees related to the eviction, the payment of the insurance taken out by the landlord for the apartment, ie all possible expenses related to the rented apartment. A journal of unrecognized expenses must be kept for possible tax audit.
What the landlord Can Do
A landlord may also acquire movable property in an apartment used for rental activities , the acquisition price of which may be deducted for tax purposes. If the purchase price exceeds EUR 1,000, it is deducted from the rental income as 25% annual depreciation until the remaining amount is less than EUR 1,000, in which case it is deducted at once. If the purchase price is less than 1,000 euros, the deduction can be made at once. Such movable property may be, for example, a washing machine, a television or an espresso machine.