Owners can benefit from leased real estate for tax purposes by depreciating it. Usually, this works on a straight-line basis over the entire useful life. But not always.
Owners can depreciate a rented property over its useful life. Normally, with straight-line depreciation of two percent per year. After 50 years, a property would thus be fully depreciated.
But beware: With each change of ownership, the useful life begins anew. An appraisal can prevent this.
Depreciation period is recalculated with each sale As a rule, the depreciation amount and period are recalculated with each sale. Over time, the actual useful life of a building can far exceed the statutory useful life of 50 or 40 years, says Daniela Karbe-Geßler of the Taxpayers' Association.
However, anyone who can prove a shorter remaining useful life by means of an expert opinion can benefit from this for tax purposes - thanks to higher depreciation. This is the result of a ruling (Ref.: 1 K 1741/18 E) of the Münster Fiscal Court, to which the Taxpayers' Association refers.
Münster fiscal court agrees with the landlord!