- Austrian Federal Ministry of Finance decision clarifies tax deduction rules for prematurely terminated rental agreement
- Case revolves around taxpayer who inherited property and leased it from 2010 to 2013
- Tenant ended lease due to serious illness in 2011, taxpayer struggled to find new tenant
- Tax Authority labeled rental activity as a hobby, denied input tax deduction
- Taxpayer appealed, arguing rental was legitimate business activity disrupted by unforeseen circumstances
- Federal Finance Court upheld Tax Authority’s position, stating lease termination was not unforeseeable event and rental activity was intended as short-term arrangement
Source: globalvatcompliance.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
