TAX RETURN FROM RENTAL OF REAL ESTATE

Daňové priznanie z nehnuteľnosti - Bratislava - Košice - Žilina

A tax return on the real estate or if the taxpayer rented a real estate based on the closed rental agreement, while it is not the rental of the real estate based on the business authorization. Income obtained by this kind of rental is considered to be a taxable income needed to be recognized in the tax return within the income tax of the individual.

The rental income tax liability is required to be settled personally by filing a tax return within the income tax of the individual for the tax period concerned (provided that he/she has the obligation to file a tax return).

A taxpayer is obliged to file a tax return in the case of that the sum of all his taxable income (ie income from dependent activity, from business, from other self-employment activity, from use of work and use of artistic performance, from capital wealth or other income) in the tax period for the year 2017 exceeds 1 901.67 €.

The income from the rental of real estate is exempt from income tax up to 500 € for the relevant tax period and therefore the taxpayer will include in the tax base only if income from the rental of real estate is exceeding 500 €.

Taxable rental income (after deduction of the exemption amount of 500 €) is included in the tax return on income tax of type B individual in VI. section in table no. 1 on line no. 10 in column 1. Tax expenditures are shown on line no. 10 in column 2.

A taxpayer with rental income that applies proven tax expense (although deciding to charge in single or double-entry bookkeeping or keeping records) is not an accounting unit. For that reason, there is no obligation to attach the accounting files to the tax return for income of the individual.

Real estate tax return – Expenditure processing

Daňové priznanie z nehnuteľnosti - Bratislava - Košice - Žilina - TrenčínIn the case of rental income, the taxable person may only claim for the taxable period of 2016 the demonstrable expenses for obtaining, securing and maintaining rental income on the basis of the bookkeeping (simple or double-entry) or on the basis of records (Section 6 paragraph 11 of the Income Tax Act) . However, the taxpayer can not claim the full amount of the expenditure, but must reduce it by the same proportion as the total rental income was reduced by the amount of the exempt income in amount of 500 €.

If a rented real estate is placed by the taxpayer within the commercial assets, that is to say that he will account this real estate as a commercial property or keep a record, he may claim the expenses incurred in connection with this real estate, within the demonstrable expenses. These expenses are:

  • expenditure on the purchase of the leased property (by depreciation),
  • expenditure on technical evaluation (as established),
  • expenditure on its repair and maintenance,
  • other related expenditure related to the use of the real estate (in particular expenditure on the proper operation of the real estate as energy expenditure), property insurance, real estate tax, expenditure on the reimbursement of the flat owner and non-residential property areas in the operation fund, maintenance and repairs fund, interest on loans and loans for the purchase of leased property.

If the rented real estate is not placed by the taxpayer within the commercial assets, he/she can only claim the expense for the proper operation of the real estate, such as energy expenditure, including expenditure on other services as the tax expenditure. In this case, tax expenditures can not include the expenditure for the property insurance and the property tax.

As of January 1, 2012, a taxpayer can not report a tax loss on rental income.

When a taxpayer submits a tax return on the real estate (from a lease), he can use the tax expense to a maximum of this income for the proceeds of this lease.

More info at the financial administration portal.

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