Field help:
(2019)
Building depreciation according to section 7 para. 4 Income Tax Act (EStG)
Tick this box if you want to enter the building depreciation for the object according to sect. 7 para. 4 of the Income Tax Act (EStG).
The depreciation pursuant to sect. 7 para. 4 of the Income Tax Act (EStG)
- for buildings completed before 01.01.1925 amounts to 2.5 % annually,
- for buildings completed after 31.12.1924 - 2% annually
of the acquisition or construction costs of the building. If the actual service life is shorter than 40 or 50 years, correspondingly higher deductions can be claimed.
As an exception to this rule, you can deduct the following amounts as declining balance depreciation (degressive AfA) for a building or privately-owned apartment in Germany or in an EU/EEA country in accordance with sect. 7 para. 5 of the Income Tax Act (EStG):
In the case of a building planning application (in the case of construction) or legally effective conclusion of the obligatory contract (in the case of acquisition)
- before 01.01.1995: 8 years at 5 %, 6 years at 2,5 % and 36 years at 1,25 % of the acquisition or construction costs.
- before 01.01.1996, if the property is used for residential purposes: 4 years at 7%, 6 years at 5%, 6 years at 2% and 24 years at 1.25% of the acquisition or construction costs.
- after 31.12.1995 and before 01.01.2004, if the property is used for residential purposes: 8 years at 5%, 6 years at 2.5% and 36 years at 1.25% of acquisition or construction costs.
- after 31.12.2003 and before 01.01.2006, if the property is used for residential purposes: 10 years at 4%, 8 years at 2.5% and 32 years at 1.25% of the acquisition or construction costs.
