Special repayment for rented property

Why would someone do that anyway? I'm asking out of interest? Because I just calculated that you only get your money back after 27 years. And that's with full occupancy?

What do you mean my money. It's the bank's money, not mine. Equity is the property, which was transferred 50/50 to my brother and me. In other words, I could have sold my share of the property and invested it. But my brother wanted some kind of penthouse apartment (for personal use), so we worked out a concept with an architect and built it.

Compare 300k with the invoices you can provide. Then the decision will be easier for you I had to submit everything anyway, which will also be the case with your tax office.

What are your conclusions here? Special repayment? I think my wife and I will have to go to the tax advisor this year anyway. There is also a rented property that belongs to my wife.

From a tax perspective, it makes no sense to make special repayments when renting out. If you have 70k "left over" and you would "only" put this money into a savings account with, say, 3.3%, you would already have a minimal gain, considering the tax advantage of the interest. Due to mistakes by the general contractor, good management, and negotiation skills, we also have a six-figure amount left after completion. Since we financed at only 1.3%, it was clear to us what to do with the money. Spread across broadly diversified ETFs, savings accounts, and right now we are also in the process of becoming landlords and are buying a small ground-floor apartment partly with equity. And with a little bit of money, I speculated to have had that experience as well.

What is your conclusion here?

Talk to your tax advisor about it or some income tax assistance association, which is usually cheaper. Maybe soon you will also get to know the word income tax prepayment. I had to provide invoices for everything every time. Just presenting a financing contract for a larger amount would be too easy.

Talk to your tax advisor about it or some income tax assistance association is usually cheaper. Maybe soon you'll also get to know the word income tax prepayment. I had to provide invoices for everything every time. Just presenting a financing contract for a larger amount would be too easy.

Prepayments are quite familiar to me. I do think that the annual statement of the financing with the interest paid is sufficient to claim it with the tax office. For the depreciation (AfA) I will need invoices, since the tax office somehow has to determine the value of the property.

I do think that the annual statement of the financing with the interest paid is sufficient to claim this with the tax office. For the depreciation, I will need an invoice, since the tax office somehow needs to determine the value of the property.

And I think they belong together. After all, you cannot claim the interest for the money you then invest as expenses against the rental income.