Getting the best out of a property from a tax perspective is not magic - but it does require the right know-how. Our experts have compiled the most important practical tips for owners:
1. collect receipts in full and archive them digitally
Whether it's an invoice from the property management company or proof of fees from the tax consultant: only verifiable costs are deductible. Make sure you issue invoices correctly with complete details - and archive everything digitally, ideally sorted by year and property.
2. clean separation for mixed-use properties
Do you use one part yourself and rent out the other? Then a clear breakdown of costs is mandatory. If in doubt, it's better to be too precise than too general - the tax office takes a very close look here.
3. do not record advance payments twice
Many owners make the mistake of deducting advance payments for management fees in the wrong tax year. This is important: Only state the amounts actually paid in the year in question, do not make double entries.
4. clever use of the small amount limit
Some administrative costs are below the small amount limit - a simplified statement is often sufficient here. This saves time and effort, but should still be recorded correctly.
Bonus tip: Talk to your property management company about whether certain services can be listed separately. This makes the tax allocation much easier.
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