Austria MOF Clarifies Individual Income Tax, Input VAT Deductions Related to Rental Income

The Austrian Federal Ministry of Finance Sept. 23 posted online Federal Finance Court Decision No. RV/7102420/2020, clarifying individual income tax and input VAT deductions related to rental income. The taxpayer, an individual, acquired and renovated a property and claimed individual income tax deductions for negative rental income, and input VAT deductions. The Tax Office denied the deductions. The taxpayer appealed, arguing that unforeseen renovation costs forced the property’s sale before it was rented. On appeal, the Federal Finance Court found that: 1) the taxpayer’s declaration of intent to rent was insufficient to establish a source of rental income for individual ...