What is included in income from renting and leasing?
What is included in income from renting and leasing (Form V) is regulated by the Income Tax Act. Section 21 of the Income Tax Act lists the following types of income:
- Income from renting and leasing of immovable property (land, buildings, parts of buildings, ships registered in a shipping register)
- Income from renting and leasing of rights equivalent to land (e.g. hereditary building rights, mineral extraction rights)
- Income from renting and leasing of business assets, particularly movable business assets (e.g. business inventory for commercial enterprises, agricultural businesses or freelance practices)
- Income from the temporary transfer of rights, particularly literary, artistic and commercial copyrights
- Income from the sale of rental and lease payment claims
Not included as rental income are revenues from renting out individual movable assets. This applies, for example, to the rental of individual pieces of furniture, the chartering of boats not registered in a shipping register, or the temporary lending of private vehicles, for example for a holiday trip.
(2022): What is included in income from renting and leasing?
How do I declare my investment in a property development or buyers' syndicate or in a property fund for tax purposes?
If you jointly own a rented property or land with others, for example as part of a building or purchasing consortium or a property fund, the income and expenses for this property are determined collectively and separately, and the income is allocated to the participants according to their shares. This separate determination is not required for spouses who jointly own a property and are assessed together.
The consortium must submit a special declaration for the income to be determined collectively and separately. The tax office will then issue a notice regarding the determination and distribution of this income.
The same applies to investments in closed-end property funds. Investments in open-ended property funds are classified as income from capital assets. While the income in the first case must be declared in either Form V or Form G, depending on the legal form, it must be entered in Form KAP in the second case.
(2022): How do I declare my investment in a property development or buyers' syndicate or in a property fund for tax purposes?
