There is one bedroom in the Triangle for rent and another for the landlord’s own use. The kitchen and living room as well as the laundry facilities are shared between the tenant and the owner. Half of the costs for the entire apartment (for example, electricity and company compensation), i.e. the share divided in relation to the main figure, are deductible expenses from the rental income and half are non-deductible living expenses.
An apartment of 80 m 2 in total is occupied by three people. The tenant’s exclusive use is a 16 m 2 room, i.e. 20% of the apartment area. In addition, the tenant and the landlord’s spouses have a shared kitchen and laundry facilities with a total area of 12 m 2. The shared share is 15% of the apartment area. The tenant’s share of the room used by the tenant and the tenant’s share of the costs of the shared space are deductible from the costs for the entire apartment. The deductible proportion of the costs is thus 20% + 1/3 x 15% = 25%. You can make use of the taxfyle for the best tax calculation and submission.
Ordinary leasing expenses
Expenditure directly attributable to the rental income for the acquisition or retention of rental income includes, but is not limited to, the following expenses paid by the taxable person himself:
- Care allowances
- Capital and financial consideration included in the company’s income
- Water, sewage, road, electricity and heat charges
- Property insurance premiums
- Property tax
- Annual repair costs
- Expenses incurred in acquiring a tenant, such as a brokerage fee and telephone expenses
- Legal and litigation costs arising from rental activities, such as the collection of rent, the termination of a lease or the eviction of a tenant
Travel expenses for rental activities
Expenditure on debt (other than interest) incurred in acquiring a rented dwelling, such as a provision for a loan, an arrangement fee and a delivery charge.
If required, depreciation is also deducted from the rental cost of the acquisition cost of the building on the property and the renovation costs added to it, as well as the renovation costs of the condominium. The acquisition cost of furniture and household appliances is also deducted as depreciation in certain situations. Depreciation in different situations is discussed in more detail below.
Expenses related to travel related to rental activities are deductible expenses from rental income. Trips related to rental activities may include, for example, demonstration, inspection and maintenance visits, as well as trips related to concluding a rental agreement. Trips made to the Annual General Meeting of a housing or real estate company or to a Board meeting as a member of the company’s Board of Directors during the rental period are also trips related to rental activities.