Proof of higher depreciation when renting out property

May 29, 2024

Taxpayers can claim higher depreciation in accordance with Section 7 (4) sentence 2 EStG by providing evidence of a lower useful life. However, according to the BFH ruling of 23.01.2024 (IX R 14/23), precise evidence is required for this. This lower useful life is not sufficiently proven on the basis of a model of the total and remaining useful life of a building in accordance with the relevant real estate value regulation.

Landlords should also be aware that if they claim a significantly shorter useful life with the intention of initially claiming tax-effective losses from letting and leasing and then selling the property tax-free after 10 years, this will not be recognized by the tax office if no total surplus is achieved. The tax-free sale of the property is not to be taken into account as part of the profit (BMF letter dated 08.10.2004, DStR 2004, 1877).