Save taxes with Denkmal-AfA – Here’s how
Our example client buys an apartment for 390,000 EUR in a listed building and would like to rent it out afterwards as a capital investment and tax-saving model.
He has 90,000 euros of equity capital, 300,000 euros he borrows from the bank.
Interest rate: two percent, two percent redemption and 15 years fixed interest.
In addition, he has a special repayment right of another five percent of the loan amount per annum guaranteed, so that he can noticeably accelerate the repayment of the loan if he has surpluses after his tax return.
The calculated shares according to the developer’s experience are as follows:
- 17.5 % Land 250 EUR
- 17.5 % Old stock 250 EUR
- 65,0 % Rehabilitation costs EUR 500
For tax purposes, Mr. Mustermann can depreciate the building value of the property before renovation with the linear depreciation of 2.5 & and on the other hand, he can depreciate the complete renovation costs with the high monument depreciation rates – which initially amounts to nine percent plus the interest he pays on his bank loan.