Property owners can optimize their tax deduction for wear and tear (AfA) with a remaining useful life report. An expert opinion can be used to prove that the actual useful life of a property is shorter than the tax office's estimate. This makes it possible to increase the annual depreciation amounts and reduce the remaining useful life. This allows owners to depreciate their property more quickly and reduce their tax burden.
The professional appraisal to prove the shorter useful life must be prepared by a qualified expert and include a realistic estimate of the remaining years of use. If the tax office has estimated a longer useful life, such a well-founded assessment can lead to a reduction in depreciation. For example, the tax office assumes a useful life of 40 years for buildings constructed before 1925.
However, the actual useful life of a property may be shorter. Various factors contribute to this, such as technical wear and tear or legal restrictions on use. If owners then decide to resell their property, they can benefit from the remaining useful life appraisal and save money through a tax reduction.
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