Real estate prices have been rising rapidly for years, while rental income is to be curtailed by rent control or rent caps. This year, the new property tax comes into force and the CO2 price, which was previously apportionable, is to be paid in part by the landlord. Private landlords in particular are facing ever greater financial hurdles. "However, there are definitely ways for landlords to save money. For example, as of late, existing properties do not have to be depreciated across the board over the 50 years suggested by law, but can also be depreciated more quickly, i.e. at higher amounts, if an appropriate useful life expert opinion is submitted."
In February 2022, the Münster Fiscal Court clarified in a decision (case number 1 K 1741/18 E) that the remaining economic useful life of commercially used real estate determined by private expert opinions can be considered as the basis for the tax depreciation rate. Thus, the Fiscal Court confirmed the decision of the Federal Fiscal Court of 28.07.2021 (file number IX R 25/19), which stated in the last instance that the taxpayer can use any method of presentation to demonstrate the shortened actual useful life of a building used to generate income (Section 7 (4) sentence 2 EstG), which appears suitable in the individual case to provide the necessary evidence.
David Glasenapp says: "The two rulings of the BFH and the FG Münster lift the topic of useful life from a shadowy existence into the mainstream. Where previously sometimes elaborate building substance appraisals were required, today an online appraisal is sufficient. However, most private landlords and also their tax advisors do not yet seem to be aware of this possibility. As a result, we estimate that the average private landlord of an existing property gives away between EUR 2,500 and EUR 5,000 per year. Especially capital investors who bought a property as a retirement provision and now rent it out should not let this opportunity go to waste."