- No input tax deduction for investments in case of (still) lacking entrepreneurial status of the usufructuary
- A usufructuary who has already made renovation expenses on an apartment before the granting of the usufruct right (e.g. installation of windows) generally does not establish an entrepreneurial status according to § 2 UStG, unless a serious and externally recognizable intention to rent out can be determined.
- Therefore, the usufructuary is not entitled to input tax deduction for the renovation work carried out on the apartment that was actually rented out only after the granting of the usufruct right.
Source: info.leitnerleitner.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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