Is financing a single-family house feasible? Start house construction end of 2023

Depreciation and interest

Words words words

Ok, with interest it is clear.
Now I am curious about what can be depreciated for a new building? Construction costs?

The production cost of the house can be depreciated with the proportion attributable to the rented area. AFA

Ok, when it comes to interest, it is clear. Now I am curious what can be depreciated in new construction? Construction costs?

I am not a tax advisor and certainly don’t know all the semi-legal tricks. But in this case, I would take out two loans and not repay the one for the granny flat. Then I would try to allocate as much of the construction costs as possible to the granny flat. Grandma also only pays the minimum rent and in return gives bigger birthday and Christmas presents. If something breaks, it’s always in the granny flat. The depreciation on the house value, excluding the land, was increased from 2 to 3% in Jan. 23 and there is also a special depreciation for 5 years for energy efficiency.

Then I would try to allocate as much of the construction costs as possible to the granny flat. Grandma also only pays the minimum rent and, in return, gives bigger birthday and Christmas presents. If something breaks, it's always in the granny flat.

The tax offices were not born fools either.

The tax offices were not born stupid either.

from 50% of the local customary rent, long-term 66%, the tax office does not care. This can be further reduced with gardening work or babysitting. All completely legal. and grandma may give whatever she wants as long as it is under €10,000.––