It is clear from the case law of the Administrative Court that the renting of apartments to dependent children is to be subsumed without any doubt under § Section 20(1)(1) of the Income Tax Act and thus is not to be recognized for income tax purposes. – The input tax deduction in connection with the renting of apartments to dependent children is therefore to be denied due to the lack of income tax deductibility of the expenses pursuant to § 12 para 2 no. 2 lit a UStG. BFG, 29.11.2022, RV/7101373/2017
Source: bmf.gv.at
