Austria MOF Clarifies Taxation of Advertising, Property Renovation Costs

The Austrian Federal Ministry of Finance Jan. 29 posted online Federal Finance Court Decision No. GZ. RV/4100424/2018, clarifying the tax treatment of renovation and expansion of property expenses. The taxpayer, an individual, converted a company building into an event center and later claimed expenses, including advertising costs stating the same were necessary for generating income from the property. The Tax Authority challenged the deductibility of the expenses, arguing the taxpayer failed to establish a credible intention to rent out the property. The Federal Finance Court held that: 1) the taxpayer had to demonstrate a clear intent to generate income from ...