Standard elevation
As a standard raise is called in the tax law , the improvement of properties as part of the repair and modernization. Expenses associated with a standard survey are calculated at the cost of acquisition or production and can only be offset against tax in the form of depreciation. Maintenance expenses, on the other hand, can regularly be deducted immediately as operating expenses or advertising expenses. If at least three of the four central characteristics of a property improve , a standard survey occurs.
The central features are:
- Heating system
- Plumbing
- Electrical installation
- window
The improvement from a very simple to a medium standard as well as the increase from a medium to a very demanding standard is considered an improvement. According to the BMF, examples of a very simple standard are:
- The bathroom has no hand basin
- The bathroom cannot be heated
- There is no ventilation in the bathroom
- The walls in the bathroom are not mostly tiled
- The bathtub stands free without facing
- There is only a bath heater
- The windows only have single glazing
- There is a technically outdated heating system (e.g. coal stoves)
- The electrical supply is insufficient
A very demanding standard exists if, when installing the central equipment features, not only the practical but the possible, especially through the installation of exceptionally high-quality materials, were used (luxury renovation).
In the case of the standard elevation, the expenses are to be added to the assessment base for depreciation for wear and tear on the property, i.e. they are regularly spread over 33, 40 or 50 years.
Near acquisition costs
Procurement-related production costs according to Section 6 (1) No. 1a EStG have the same effect . These exist when expenses are incurred for the repair and modernization of a building
- within 3 years of purchase
- over 15% of the acquisition costs (comparison of the values without sales tax , regardless of input tax deduction)
- that are not extensions
- and which are not usually annual maintenance expenses.
Here, too, the expenses are not deductible as business expenses, but only as part of the building depreciation.
