Tax advisor in ... with tax advice: Real Estate / Rental

Tax advice on real estate acquisition and ownership Buying houses and apartments is not only a goal for many young people to use as their own home; real estate also appears attractive as an investment with a long-term investment horizon. In addition to taxes that can be incurred when buying and selling, most tax questions relating to real estate arise in the tax return, in which not only rental income must be declared, but also expenses for the maintenance and modernization of the property can reduce your tax burden as depreciation. Professional tax advice can be financially worthwhile here. But you can also have your tax advisor check the profitability when setting up financing for a purchase on credit.

Where can a real estate tax advisor be helpful?

Regardless of whether you want to buy a condominium, have inherited a house or want to invest your money profitably in real estate: the sums of money that are tied up in these properties and flow back and forth when buying and selling are large; there is also regular income from rent and maintenance costs. These large amounts quickly make it worthwhile to go to a tax advisor, as they can find and optimize savings potential in many areas.

Tax advice on real estate planning

Even before you buy a house or a condominium, it can be worthwhile to contact a tax advisor. Many people see real estate as a worthwhile long-term investment: the material value is subject to only minor fluctuations over time and, especially in metropolitan areas, the expected rental income increases from year to year. The leverage effect of using borrowed capital also makes real estate interesting for investors: in the current low-interest environment, taking out a loan to finance apartments and houses is particularly attractive. You can also discuss with your tax advisor how the long-term return on real estate compares to stocks or other bank products, taking bank loans and taxes into account. Especially if the tax advisor specializes in real estate law, he or she can better assess the risks and profit opportunities of these investments. But even apart from the idea of ​​buying residential property as a profitable investment, many people dream of owning their own home to live in themselves. For most people, however, this also means taking out a loan to be able to pay the property price and all incidental costs. You can also get advice on such financing and have it checked at tax offices.

How can you save taxes on property maintenance?

Even if owning a residential house or commercial building is often referred to as concrete gold, larger investments are required from time to time to maintain or increase the value of real estate: in old buildings, insulation measures for walls and roofs are necessary; replacing windows, the heating system or sanitary facilities is also rare, but costs a lot. Fortunately, a large part of the costs for tradesmen and maintenance costs can be deducted from taxes. A tax advisor who specializes in real estate can best explain to you how you can save the most taxes by deducting expenses for your house from your taxes. Since the costs involved can be very high, professional support is particularly worthwhile here.

What taxes apply to real estate?

If you want to look at condominiums and houses from a tax perspective, there are essentially five taxes to consider: real estate transfer tax must be paid when buying, and speculation and inheritance taxes are due when selling or bequeathing real estate. Property tax, on the other hand, must be paid every year and is based on the valuation of the respective property. However, the most extensive impact a property will have on your tax situation is on your income tax. Not only potential rental income must be taken into account here; your tax burden can also be reduced through depreciation; and if you use the property yourself, you can claim some expenses as retirement provisions. Because detailed knowledge of the legal situation and tax law is essential to keep the tax burden low, it is worthwhile for homeowners and real estate investors to seek tax advice from specialized tax firms.