No recognition of damage repair as an additional advertising cost for the rental

The recognition of expenses as advertising costs is generally broad in scope within the framework of the rental business. Thus, both expenses incurred in the lead-up to the rental activity and expenses incurred during a phase between two rentals are tax-recognised, provided that the Motivation through rental activities However, if renovation work or damage repair can be proven to have been carried out after the end of the rental and before subsequent private use, no subsequent advertising costs can be claimed. The UFS (RV/0607-I/06 of 9.1.2008) recently decided on this and thus confirmed the ongoing jurisprudence of the VwGH and BFH. The reasoning is that after the end of the rental activity, there is no longer any connection to this non-business income generation and the planned private use of the rental property for renovation determining factor It is. The fact that the lack of tax enforcement does not change the fact that the replacement of floors, tiles, washbasins, etc. was caused by wear and tear on the part of the tenants. If the renovation is carried out on the private motives Furthermore, this can be attributed to a lack of entrepreneurial connection no pre-tax deduction to be done.

The tax recognition of damage repairs or renovation costs as additional advertising costs therefore proves extremely difficult and is only possible in the case of Elimination of damage Possible, which go beyond the usual wear and tear or even deliberately This also depends on whether serious recourse claims were made to the tenants, although ultimately unsuccessful. Since a connection to the rental activity is obvious, expenses such as, for example, the payment of interest or property tax due for the rental period are recognized as post-tax advertising costs.

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