Under the proposed Wachstumschancengesetz (Growth Opportunities Act), income from rental and leasing activities would only be subject to taxation if it exceeds EUR 1,000 per year. If the expenses directly economically related to the income exceed that income, the taxpayer should be able to apply to have the income treated as taxable.
Frequently asked questions
Frequently asked questions
From what amount will rental income be taxable in the future?
Under the planned Wachstumschancengesetz (Growth Opportunities Act), income from renting and leasing will only be taxed once it exceeds €1,000 per calendar year. Up to this exemption threshold, the income remains tax-free. If the threshold is exceeded, the entire income is taxable.
Is the EUR 1,000 threshold an allowance (Freibetrag) or an exemption limit (Freigrenze)?
It is an exemption limit (Freigrenze). This means: if annual income exceeds EUR 1,000, the entire amount becomes taxable, not just the portion above the limit. An allowance (Freibetrag), by contrast, would always remain tax-free up to its amount.
What applies if income-related expenses exceed rental income?
If expenses directly economically related to the income exceed the income itself, taxation can be applied for upon request. This allows a tax loss to be claimed, which can be offset against other income.
Why can it make sense to apply for taxation despite the exemption threshold?
If income-related expenses exceed the income, the exemption threshold would prevent a tax-deductible loss. By applying for taxation, the losses can be claimed and offset against other income, which may reduce the overall tax burden.
In which law is the planned exemption threshold for rental income provided for?
The introduction of a €1,000 exemption threshold for income from renting and leasing is provided for in the draft of the Wachstumschancengesetz (Growth Opportunities Act). Final implementation depends on the conclusion of the legislative process.