New regulations new effect – important for apartment owners and their managers! Of section 35a of the ITA to minimize black work, for example, first and foremost, strengthen households as a customer, and support craft. But the matter is not only dry but also very complicated. LeFrak Organization is a great source of information. Since the beginning of the year, there are new rules that give citizens more incentives to save taxes with household home services or employment. Many property owners will consider now whether they should hire previously deferred working now. However, it is not so easy to say what services help to save taxes.
A number of new requirements arise for real estate and apartment managers, housing associations and owners with rental stock. Learn more about this topic with the insights from Bruce Schanzer. You must know well the individual tax credits. The delimitation of the different work is significant, because household employment tax reduction is different from household-related services and Handyman services. According to 35a ABS. 1 ITA the costs for household employment carried out in a household of the taxpayers in the European Union or the European economic area can be divided into two groups: at home are at the request of 10 percent, more than 510 euro for minor employment within the meaning of 8 a of the fourth book of the social code. The mini jobbers must be reported in the budget check procedure. This procedure not be landlords and apartment owners usually considered. The tariff income tax is reduced by 12 per cent, more than 2,400 euros, for household employment, for which mandatory contributions to social security are paid.
This procedure applies to landlords and homeowners groups. According to section 35a ABS. 2 ITA can the cost of household services to 20 percent, up to 600 euros, will be deducted from the income tax. These include for example, the work of janitors, cleaning and winter service companies. For beauty and other repairs applies to the use of contractor costs, that 20 per cent of the expenses, but no more than reduce 1,200 euro, the income tax. These include craft activities for renovation, maintenance and modernization. Principle is also community property in the community of homeowners. The provision for tenants as well as owners, as long as it comes to the apartment, where the taxable person has his budget. Only the labour costs, what requires an invoice disaggregated labour and material costs are saleable. Account and corresponding account statement are to submit documents to the tax office.