Financial planning with a rented apartment

Yes, but if he received the apartment as a gift, what value can he then state?

b) I did not pay the market value

The 50 years start anew repeatedly. Even the apartment in the 300-year-old house can be depreciated over 50 years when purchased. But exclude the land portion. Land is eternal and cannot be depreciated. Where does the market value come from? From an appraisal? Then use it as a basis.

The market value is stated as such in the transfer agreement. Explicitly for the apartment.

Yes, but if he received the apartment as a gift, what value can he then declare?

That is exactly my problem. I read on the internet (I no longer have the source) that in the case of a gift the 50 years do not start anew. For a transfer with payment, I could not find anything that is clear for me... --------------------------------------------------------------------------- That does not solve my problem for now, but what actually happens if I simply declare it in the tax return? Am I then immediately a criminal who commits an offense or are the officials so kind as to point out that this is not possible and that I have to enter it differently?

Don't worry. You can claim any nonsense. The worst that can happen is that it gets crossed out. Next year, you can claim the same nonsense again and it would again just be crossed out at most. There is no penalty. However, if you rent out and do not declare it, it looks different. The depreciation (AfA) is finished and does not start anew in your case, since, from a tax law perspective related to Anlage V, it is considered a gratuitous acquisition.

The depreciation (AfA) is complete and does not start anew in your case, as it is considered a gratuitous acquisition for tax purposes with regard to Anlage V.

Now we still need some information from the OP and a tax specialist.
What is the consideration for the compensation payment? Can the transfer be split into a remunerated and a non-remunerated part? Since when has the apartment been owned by the "seller"?

Don't worry. You can claim any nonsense. The worst that can happen is that it gets crossed out. Next year, you can claim the same nonsense again and it would at most be crossed out again. There is no penalty.

Isn't a deliberate false statement in the tax return one of the most serious offenses known to the rule of law? It feels like it's worse than murder and prosecuted more severely.

Yes, that's what I thought too, but maybe it's only like that the second time. After all, I am not a tax professional and act according to my best conscience. Although it is also said that ignorance of the law is no excuse...
But anyway

Don't worry. You can declare any nonsense. The worst that can happen is that it gets crossed out. Next year you can declare the same nonsense again and at most it would be crossed out again. There is no penalty.
If you rent out and don't declare it, however, it's a different matter.
The AfA is finished and does not start anew in your case either, since it is considered an inherited acquisition for tax purposes with regard to Anlage V.

Then take that out of the current calculation right away. Better to calculate with the worst-case scenario than the more favorable one.

Now we would need some information from the OP and a tax expert.
What is the value of the compensation payment? Can the transfer be split into a paid and unpaid part? Since when has the apartment been owned by the "seller"?

What other information is needed?
Currently, I would calculate as follows

Cold rent income per year = €12,000
- Loan interest = €600
- Kitchen = €1,200
- Administration, the rent account, maintenance, trips to the property = "unknown" €
- Compensation payment = €3,600 (not yet sure if valid)


I used the money from the loan, for example, also for a new bathroom. Can I deduct the shower, bathtub, toilet, and also tiles? I assume flooring is not defined as depreciable for wear and tear?
What about electrics, is that valid under AfA?
Roof insulation?
I should be able to deduct "everything" because it fully adds to the value of the apartment, right?