Mitte Realty

The Tax Office informed home from Augsburg it is free to leave his home to family members for a discounted price to every real estate owner. This can imply however tax consequences. Namely, the IRS can leave that is taken with a discounted rental income loss in buying and thus tax hobby is operated. This has an effect on the amount of advertising costs, which may be deductible. Now it is less complicated to rent an apartment or a House at a discounted price to relatives or friends, because eliminates the surplus forecast has had to be carried out, then as well as the distribution of advertising costs in a privately initiated and a proportion of the not privately initiated. The innovation facilitates the rental and apply starting in 2012. These changes also apply to contracts concluded before 2012.

About the changes, the Tax Office informed home from Augsburg. Apply starting in 2012 following new regulations in a rental to relatives or friends: If the rent is less than 66% of the local rent, then a pro rata reduction of the expenses attributable to the apartment takes place generally and without checking the forecast of a surplus. These can be deducted from the rental income. The rent between 66% and 99.9% of the local rent, is then a profit intention is assumed in principle and no forecast into account, it is necessary. The advertising costs are fully deductible. For detailed information about the tax rules for rental nationals is the tax office home anytime available.