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

  • Erstellt am 2020-03-30 09:30:02

RomeoZwo

2020-04-01 17:26:11
  • #1
And where exactly is the difference whether I reduce the equity share before the purchase of the investment or at a later refinancing? According to your argument, all owners of a mortgaged investment property should not have any additional assets. What matters is only that the profit generation is maintained. Otherwise, it is hobby activity and not deductible.
 

RomeoZwo

2020-04-01 17:29:19
  • #2
It has been discussed with the former legal director of the tax office and, in his opinion, it is completely usual and legal.
 

RomeoZwo

2020-04-01 17:37:54
  • #3
Just turn the situation around. Person A and B each have €300,000. Person A buys a single-family house for personal use, using €250,000 equity and €250,000 from the bank. With the remaining €50,000, Person A buys an apartment (purchase price €250,000) for rental purposes and finances the missing €200,000 through the bank, the interest of which is tax-deductible.

Do you see a problem with Person A?

Person B buys (or borrows) an apartment for rental purposes worth €250,000. €50,000 comes from equity and Person B borrows €200,000 from the bank. The interest for the €200,000 is claimed for tax purposes. With the remaining €250,000, Person B buys a single-family house for personal use. The missing €250,000 come from the bank (the same or another).

Where is the difference to Person A?
 

Aphrodithe

2020-04-01 17:44:47
  • #4
Here, the loan is used exclusively for the purpose of financing privately used living space with a tax advantage. The legislator did not intend this. There are judgments from the Tax Courts Münster and Cologne in my jurisdiction. I can look them up exactly when I am back in the office. Someone is taking a big risk here. The tax offices usually do not check this, but the tax relief is not intended for the creation of private living space. It is different with an apartment/house for rent.
 

RomeoZwo

2020-04-01 17:45:06
  • #5
This makes it clear that it does work. It's only about the interest on the rental property, not the entire loan! The state does not yet dictate what you have to use your equity for. That means you can also burn your money (which would be the worst for the state, as other investments also incur taxes – mostly on the expensive car).
 

RomeoZwo

2020-04-01 17:48:38
  • #6
But the OP is creating rental living space. The terraced house will be rented out in the future. He is generating taxable rental income that did not exist before. I would really be interested in the rulings and the exact circumstances, I would be happy if you could look them up.
 

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