In order to reduce the acquisition cost of furniture and household appliances, a list of furniture and household appliances must be kept, indicating their quantity, quality and non-depreciable acquisition cost.
Furnished apartment (furniture reduction)
Furnished dwelling means a dwelling with at least the furniture and appliances necessary for a normal life. When renting a furnished apartment, the taxpayer can make a deduction either schematically or in the amount of actual expenses. The deduction procedure must be the same each year – either at the level of actual expenditure or at the level of the standard deduction.
The amount of the schematic deduction is stated in the Tax Administration’s harmonized guidelines. In the taxation submitted for 2019, in the absence of other evidence, it will not exceed EUR 40 per month when the object of the rental is a furnished studio or room. If the object of the rental is a furnished one-room apartment or a larger apartment, the amount of deduction in the absence of other Settlement is a maximum of 60 euros per month. The amount of the deduction is not affected by the number of Tenants. With taxfyle you can have all the tax calculations done.
The schematic deduction covers all the costs normally incurred in obtaining rental income. In addition to the schematic deduction, the Maintenance Consideration and the capital consideration recognized in the housing company’s housing accounts, as well as the repair costs as described in section 3.7, are deductible.
Example 6: He has rented a furnished semi-detached house to Berta for a monthly rent of 600 euros. He has received rental income from the apartment of EUR 7,200 during the year. They have paid company fees of EUR 200 per month, for a total of EUR 2,400. In addition to the company’s compensation, they intend to reduce the so-called furniture reduction, which in his case amounts to EUR 60 per month, i.e. EUR 720 per year. Anti’s taxable rental income is EUR 4,080 (EUR 7,200 – EUR 2,400 – EUR 720).
If the taxable person establishes the actual costs of the leasing activity, the deduction will be granted in accordance with the statement. Acquired furniture and household appliances are then deducted either as annual expenses or as depreciation, as described above.
Annual repair and overhaul
The deduction of renovation costs from rental income is affected by whether it is an annual renovation or renovation and whether the annual renovation or renovation is made to a building on the property or to an apartment managed on the basis of shares. The share of your own work is not deductible under any circumstances.
The annual repair costs incurred to maintain the condition of the apartment can be deducted from the rental income. Annual repair costs are deducted from rental income in the year in which they are paid. Annual renovation costs are when a building or apartment is restored to its original condition.