Housing and the Right Taxes You Need To Submit


Pursuant to the Housing Companies Act, a company may, under the conditions provided by law, take possession of an apartment for a specified period and lease the apartment on behalf of the owner to collect the company’s receivables or expenses. The company accounts for the rental income to the owner to the extent that it exceeds the company’s receivables and expenses. Even in this situation, the Gross rental income is entirely the income of the owner and not the income of the housing company.

In the event of a takeover, the owner has the right to deduct the costs related to the rental period, which are e.g. care allowances from that time. On the other hand, fees and costs relating to the period prior to the takeover and rental, which the housing company charges by renting the apartment, are not deductible.

If the owner donates only the rental income without the transfer of ownership or control of the property, the rental income is taxed as the owner’s income. Rental income donated by the owner is a gift subject to gift from the recipients. To calculate estimated taxes you will need the best tax calculator now and that is available.

Personal source of income

According to section 32 of the Income Tax Act, rental income is taxable capital income. Expenses incurred in acquiring or maintaining capital income are deductible. The deductibility of expenditure on rental income is described in Chapter 3 below.

Business activities

Business activities are business and professional activities. According to section 5 of the EVL, income from business activities is e.g. compensation received for Renting a business or profession or the property, right or benefit associated with it. Income from business activities is divided into earnings and capital income in accordance with section 38 of the TVL.

An asset belongs to a business activity if it is used exclusively or mainly in a business activity (Section 53 EVL). Thus, a business activity is concerned, for example, when a Trader mainly rents a property or apartment used by a business activity. Otherwise, to consider leasing as a business activity requires that the characteristics of the business activity be met as a whole. The hallmarks of business operations have been considered to be eg the following:

  • the pursuit of profit
  • independency
  • systematic
  • business risk
  • continuity
  • targeting an Unlimited or at least a large number of activities.

The characteristics of business activities can be fulfilled, for example, in an office hotel-type rental, where the premises are rented furnished and otherwise tailored to the needs of the Tenants, possibly with ancillary services.

In business activities, expenses arising from the acquisition or retention of income are deductible. Thus, expenses incurred in acquiring or maintaining rental income that is considered business income are also deductible.

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