- Federal Finance Court Decision No. GZ. RV/5100382/2023 clarifies tax on renting small home apartments
- Taxpayer purchased a single-family house, modified it, and rented out apartments
- Tax Office classified rental activity as a hobby, disallowing input tax deductions
- Taxpayer argued rental activity was a legitimate business
- Federal Finance Court agreed with taxpayer, allowing input tax deductions for rental activity conducted for a fee
- Renting the property was considered a business activity, allowing taxpayer to deduct input tax
Source: news.bloombergtax.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.
