Feasibility single-family house + land 550k-600k NRW

The example in #45 is probably unfortunately formulated. What Romeo is actually trying to get at, in my opinion, is the difference when a person A takes on debt to finance a rental property or when a person B simply finances the entire amount from equity. It is, as has been correctly mentioned here several times, based on the economic connection according to Par 9 Abs. 1 S. 3 Nr. 1 S. 1 Einkommensteuergesetz. If person A takes out financing for the rental property, this is in economic connection with rental income according to Par. 21 Einkommensteuergesetz and thus the interest is tax-deductible. If person B does not need financing and simply pays in cash, even in the case of later borrowing there is only a connection with the rental property if the financing serves the property, e.g. for renovation, expansion or similar. However, borrowing on a rented property for purposes other than for this property can never be in economic connection with it, as this corresponds to pure logic. The use of this financing for a self-used single-family house thus falls under private living expenses and is therefore subject to a deduction prohibition according to Par. 12 Nr. 1 Einkommensteuergesetz. BFH rulings on the economic connection with rental properties: IX R 65/00, IX R 40/01, IX R 38/00, IX R 22/01, IX R 58/03, IX R 20/04 Your suspected unequal treatment only exists insofar as one person used their equity for a debt-free object and the other generated deductible interest expenses. However, both persons had the possibility to do so, which is why it does not constitute unequal treatment under the Basic Law.

So the structure in the specific case of the original poster would be: - Sale of the terraced house to the spouse (exempt from real estate transfer tax) and the spouse mortgages the house and rents it out (economic connection according to [Par 9 Abs. 1 S. 3 Nr. 1 S. 1 Einkommensteuergesetz] exists) --> tax deductible. - Purchase of the single-family house with the equity capital from the sale to the spouse. Of course, multiple notary fees incur - whether this is still worthwhile given the low interest rates is questionable.

Yes, that would work. Of course, various things must be taken into account. Previous ownership structures etc., but in theory, it is possible. There are many married couples where, for example, the wife acquires the property and then rents a floor to the husband's company. On one hand, the rental income must be declared, but also the proportional costs, and the husband can claim the rent as business expenses. Everything must, of course, be in proportion, and one must not make any contracts with unrealistic figures.

Hello can you please try to send me a PM? I tried to write to you, but the message "disappears" without an error message.

Hi,

unfortunately it’s not possible because I haven’t written enough posts yet.

Hello , apparently you can no longer message users with <100 posts. I think I have to wait until you have written a few more.