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 tax-deductible as income-related expenses. The costs are spread over a period of 20 years (depreciation for wear and tear) and claimed as special expenses. This regulation primarily affects rented properties and is relevant for the tax planning of property owners.