BMF Information on changes to building depreciation

As part of the Tax Reform 2015/16 It was also the AfA for buildings in the operational area on (up to) 2.5% unified. Since this change applies to fiscal years starting in 2016, it also applies to already existing buildings This leads to transfers of 2% or 3% to the AfA set of 2.5%. That BMF has recently acquired a Information the draft published regarding the „taxation changes regarding the taxation of real estate, as well as other tax changes by the StRefG 2015/16“, which comprehensively address the following issues: Consequences The Changeand in the depreciation of buildings Despite the standardization of the AfA sentences to 2.5%, it is after as before Possible, one shorter service life thanks to expert advice about the technical condition to be demonstrated. If this was already achieved before the 2015/16 tax reform, there is no change in the useful life – but it is also no proof a shorter service life on the occasion of the legal changes made by Tax reform Possible.

The transfer of the AfA set entails that not only the AfA set increases or decreases, But it also leads to new residual use period In a first step, this means that a calculation is made to determine Annual AfA amounting to 2.5% of the historical acquisition or production costs to calculate. In a second step, the new residual use period from the Division of the remaining book value in 2015 by the new AfA (2.5%). In many buildings, the AfA drops from 3% to 2.5%, which means an extension of the remaining useful life, as the tax residual value must be redistributed on 31 December 2015. BMF Info The concrete calculation shows, among other things, the following: Example:

Will be commercial buildings for residential purposes surrendered, Thus, the AfA rate (up to) 1,5% p.a., which results in Equality with the AfA in non-operational area is taking place. From the Transfer for residential purposes In any case, it is with Long-term rental of housing over a period of at least three months to go out of its way – for example, in the long-term rental of hotel rooms or apartments. Likewise, this is the case with Accommodation for employees employed by the company for residential purposes in (adjacent) buildings in this case – it is not relevant how long the individual employee uses the building for residential purposes. On the other hand, the BMF takes a Short-term rental for residential purposes in buildings or parts of buildings that are used in the context of commercial accommodation surrendered will be. Consequently, they Hoteliers and commercial apartment rental companies usually one AFA of 2.5% to start, as the short-term accommodation of guests with a comparatively high turnover of users does not meet the requirements for the 1.5% AFAs.

Garages and parking spaces for cars are not intended for residential use and are therefore subject to annual depreciation of 2.5%. The investigation of the AfA for self-contained building components such as, for example. Cellar compartments It depends on whether one uniform rental can be used. For example, if one Apartment for residential use including a basement area rented in the same building (by the same landlord), so the rent is AFA set uniform 1.5%. If, however, the basement unit is provided by another landlord, that unit is subject to an AfA of 2.5%, as no uniform assessment can be accepted. sub-adult Change of use the BMF considers this when assessing independent building components such as basement areas, for example Overweight consideration, Similar to the half-year AfA, before.

The BMF Info settles down Also with the from 2016 current Changes in the Repair and maintenance costs Accordingly, a separation takes place. Extension from 10 to 15 years at Refurbishment costs for buildings belonging to the investment assets that are leased to third parties for residential purposes on a fee basis. Refurbishment costs and optionally maintenance costs for extend buildings used for residential purposes also themselves from 10 to 15 years. Buildings that are left to employees for residential use are not affected. The change is intended to ensure that Equality des corporate Area and the area of Rental and leasing The goal is to achieve. Extension 15 years also applies to divided up by force, Open tenth-grade lessons for Refurbishment costs.

We will inform you of any deviations from this draft and of the implementation in the relevant guidelines.

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