Timing of attic conversion from a tax perspective

2022-04-25 08:40:29

If more than 15% of the purchase price is invested in renovations, etc., within the first 3 years after purchase, these costs are part of the acquisition costs and are depreciated over the useful life. After that, the expenses can be directly deducted from the income. That is indeed a difference, and thus the timing of the expense matters. Caution: layperson's opinion and not tax advice; it can certainly be viewed in a more differentiated way.

However, an attic conversion is not a renovation, especially if an additional apartment is created.

2022-04-25 22:48:18

a loft conversion is not a renovation

However, this is completely irrelevant for tax purposes if the 15% limit is exceeded within 3 years, cf. 6 (1) No. 1a Income Tax Act

especially not if an additional apartment is created.

This leads to production costs for the property.

2022-04-26 12:29:22

Hello forum, I bought a house on credit in 2018. Now I am considering converting the attic. Is there a point in time from a tax perspective (regarding depreciation or other aspects, etc.) from which one should start after the purchase? Many thanks for the advice.

It's best to call the tax office or a tax advisor, then many questions can be clarified, and you also get the correct answer. Personally, I first have too many questions open about what this is actually about... Is it about capital gains tax? About depreciation (then attic conversion new living space = the costs depreciated at 2% over 50 years....) or whatever....

Timing of attic conversion from a tax perspective

Grundaus

Zubi123

Hyponex