Austrian Court Denies Tax Deductions for Unrented Property Due to Insufficient Rental Intent

• The Austrian Federal Ministry of Finance posted a Federal Finance Court decision on individual income tax and input VAT deductions related to rental income.
• The taxpayer acquired and renovated a property, claiming deductions for negative rental income and input VAT.
• The Tax Office denied these deductions.
• The taxpayer appealed, citing unforeseen renovation costs leading to the property’s sale before renting.
• The Federal Finance Court ruled that the taxpayer’s intent to rent was insufficient for establishing rental income for tax purposes.
• Intent is only proven through binding agreements.
• The taxpayer briefly considered renting but maintained the intent to sell.
• Individual income tax deductions were correctly denied.
• Input VAT deductions were also denied for the same reasons.

Source: news.bloombergtax.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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