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Glossary

Depreciation

Depreciation for wear and tear (AfA) is an accounting concept in which the costs of assets are distributed over their useful life.

Depreciation for wear and tear (AfA)

Depreciation for wear and tear (AfA) distributes the costs of assets over their useful life.

Type of real estate

The "type of property" refers to the basic categorization of buildings or land based on their use or structure.

Present value factor

The capitalization of net income is calculated using the present value factor.

Year of construction

The "year of construction of the building" indicates the year in which a building was fully constructed.

BMF-compliant

"BMF-compliant" means that something complies with the specifications and guidelines of the Federal Ministry of Finance (BMF).

Standard land value (BRW)

This benchmark is the comparative price per m² of land, which is usually published every two years by the local expert committees.

Federal Fiscal Court (BFH)

The Federal Fiscal Court (BFH) is the highest German court for tax and customs matters.

DIN 17024

DIN 17024 is a standard of the German Institute for Standardization (DIN) that specifies requirements for the qualification of persons in various professional fields.

Energy certificate

An energy performance certificate is a document that provides information on the energy efficiency of a building.

Initial evaluation

What is an initial evaluation? - An initial assessment refers to the initial evaluation or assessment of a situation, problem or issue. This initial analysis is usually based on available information and provides a rough estimate without a detailed…

EStG §7 Abs.4

What is EStG §7 para. 4? - Section 7 (4) of the Income Tax Act (EStG) regulates the tax treatment of buildings that are not used for own residential purposes. It stipulates that expenses for the maintenance and modernization of these buildings are…

Parcel maps

What are cadastral maps? - Parcel maps are cartographic representations of properties and parcels of land within a cadastral area. They contain detailed information on the location, size, shape and use of parcels, buildings and other areas. Parcel…

Total period of use

What is the total period of use? - The total useful life refers to the period for which an asset, particularly in accounting and depreciation of property, plant and equipment, is expected to be used before it is considered depreciated or no longer…

Land register extract

What is a land register extract? - A land register extract is an official document that is extracted from the land register and contains detailed information about a plot of land or a property. The extract provides information on ownership,…

Floor plan

What is a floor plan? - A floor plan is a schematic drawing that shows a horizontal representation of the room layout and dimensions of a building or apartment. This plan provides a bird's eye view and illustrates the spatial arrangement of walls,…

ImmoWertV 2021

What is ImmoWertV 2021? - The ImmoWertV 2021, also known as the "Real Estate Valuation Ordinance 2021", is a German ordinance that sets out the principles for determining real estate values. It serves as a guideline for the preparation of market…

Purchase price distribution

The purchase price allocation refers to the distribution of the total purchase price of a property to the various components, in particular the land and building.

Real estate interest

What is the property interest rate? - In the real estate industry, the property interest rate is a profitability indicator that reflects market developments for market participants in the real estate market. It describes the standard market interest…

Modernization

What is modernization? - Modernization refers to comprehensive measures to improve buildings or apartments that go beyond mere maintenance. Structural changes are often made in order to raise the standard of living, improve energy efficiency or…

Notary

What is a notary? - A notary is an independent and neutral legal expert who is authorized to draw up and certify public deeds in many countries. In real estate transactions, the notary plays a crucial role by notarizing the purchase contract,…

Open tax years

What are open tax years? - The term "open tax years" refers to tax years for which tax payments or obligations are still outstanding or have not been finalized. This usually means that tax returns for these years have not yet been filed or that tax…

Renovation

What is renovation? - Renovation refers to measures to renew and refresh rooms or buildings without making structural changes. Typical renovation work includes painting walls, replacing floor coverings, repairing minor damage and similar measures.…

Remaining useful life (RND)

What is the remaining useful life (RND)? - The remaining useful life refers to the remaining period during which an asset, such as a machine or property, is expected to be used before it is considered economically depreciated or needs to be replaced.…

Refurbishment

What is refurbishment? - Refurbishment encompasses comprehensive measures to renew buildings in order to eliminate structural defects, improve the building fabric or increase energy efficiency. Refurbishment projects can make far-reaching changes to…

Tax consultant (StB)

What is a tax consultant (StB)? - A tax consultant is a professional expert in the field of taxation and tax law. Tax advisors provide consulting services to individuals, businesses and organizations to efficiently manage tax matters, fulfill tax…

Reference date of the expert opinion

What is the reference date of the expert opinion? - The reference date of the expert opinion is the exact date on which an expert opinion was drawn up or to which it refers. This date is crucial as it forms the basis for the findings and assessments…

Full floors

What are full floors? - Full storeys are storeys in a building that have a certain minimum height and are therefore considered full storeys. The exact regulations for the definition of full storeys can vary in building codes and building regulations…

Advertising expenses

What are income-related expenses? - Income-related expenses are expenses that are incurred as part of a professional or self-employed activity and can be claimed as a tax deduction. These costs must be directly related to the generation of income and…

Valuation date (WEST)

Point in time to which the valuation refers and which is decisive for determining the general value ratios.

Residential units

What are residential units? - Residential units are independent and self-contained units within a building that can be used for residential purposes. A residential unit can be an apartment, an apartment, a house or another spatially separated living…