{"id":10007,"date":"2018-10-24T06:01:57","date_gmt":"2018-10-24T04:01:57","guid":{"rendered":"https:\/\/tunal-stb.de\/acquisition-related-production-costs\/"},"modified":"2023-07-21T09:35:21","modified_gmt":"2023-07-21T07:35:21","slug":"acquisition-related-production-costs","status":"publish","type":"post","link":"https:\/\/tunal-stb.de\/en\/acquisition-related-production-costs\/","title":{"rendered":"Acquisition-related production costs"},"content":{"rendered":"

Acquisition-related production costs – restoration to a contemporary condition<\/strong><\/p>\n<\/div><\/div>[vc_single_image image=”5499″ img_size=”full”][ultimate_heading main_heading=”Anschaffungsnahe Herstellungskosten: Wiederherstellung eines zeitgema\u0308\u00dfen Zustands” alignment=”left” margin_design_tab_text=””][\/ultimate_heading][vc_separator css=”.vc_custom_1540306412162{margin-bottom: 10% !important;}”]

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Costs for maintenance and renovation,<\/h2>\n

incurred within three years of acquisition and (excluding sales tax) exceed 15% of the acquisition cost of the building are generally not immediately deductible and only have an effect on rental income in the context of depreciation (so-called “depreciation”). Production costs close to acquisition; Sec. 6 (1) No.1a EStG). After many years of renting, renovation costs to restore the<\/strong> apartment to a contemporary condition<\/strong> often cannot be avoided, otherwise it is almost impossible to re-let the apartment. Until now, it was unclear whether these renovation costs could be deducted immediately as income-related expenses if they were incurred within three years of acquisition.<\/p>\n

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However, in a recent ruling, the Federal Fiscal Court decided that no immediate deduction<\/strong> is possible for corresponding costs – since they are hidden defects that were already present at the time the building was acquired.<\/p>\n

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Example:<\/span><\/strong><\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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In 2015, V acquired a rented condominium for \u20ac70,000; the building accounted for \u20ac50,000 pro rata. In January 2017, the long-time tenant suddenly passed away. Since the equipment was no longer up to date, V was forced to carry out renovations (bathroom, windows and electrical installations). In 2017, it incurred costs totaling \u20ac12,000 net.<\/span><\/strong><\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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The costs exceed the 15% limit of (15% of \u20ac50,000 =) \u20ac7,500. It is not possible to immediately deduct renovation costs as income-related expenses; they only have an effect via depreciation.<\/strong><\/em><\/span><\/p>\n

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Something else would only apply if the defects in the apartment had only arisen after acquisition due to the culpable actions of the tenant.<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n

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(Further comments & information on this can be found in our information letter 10\/2018 under item 3.)<\/strong><\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/section>

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Geben Sie Ihre E-Mail-Adresse an, um diesen Blog zu abonnieren und Benachrichtigungen \u00fcber neue Beitr\u00e4ge via E-Mail zu erhalten.<\/p>\n<\/div>\n<\/form>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n[\/bsf-info-box]<\/div><\/div><\/div><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"Acquisition-related production costs – restoration to a contemporary condition [vc_single_image image=\"5499\" img_size=\"full\"][ultimate_heading main_heading=\"Anschaffungsnahe Herstellungskosten: Wiederherstellung eines zeitgema\u0308\u00dfen Zustands\" alignment=\"left\" margin_design_tab_text=\"\"][\/ultimate_heading][vc_separator css=\".vc_custom_1540306412162{margin-bottom: 10% !important;}\"] Costs for maintenance and renovation, incurred within three years of acquisition and (excluding sales tax) exceed 15% of the acquisition cost of the building are generally not immediately deductible and only have...","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[731,535,937],"tags":[981],"class_list":["post-10007","post","type-post","status-publish","format-standard","hentry","category-cost-of-sales","category-information-letter","category-renting-and-leasing","tag-cost-of-sales"],"acf":[],"_links":{"self":[{"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/posts\/10007","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/comments?post=10007"}],"version-history":[{"count":4,"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/posts\/10007\/revisions"}],"predecessor-version":[{"id":10239,"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/posts\/10007\/revisions\/10239"}],"wp:attachment":[{"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/media?parent=10007"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/categories?post=10007"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/tags?post=10007"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}