Austria MOF Clarifies Deductibility of Extraordinary Depreciation of Wear, Tear, for Rental Property

The Austrian Federal Ministry of Finance Sept. 12 posted online Federal Finance Court Decision No. GZ. RV/7105237/2018, clarifying the deductibility of extraordinary depreciation for wear and tear. The taxpayer rented out a single-family house. He didn’t rent it out during a period of renovation. He claimed deductions for extraordinary wear and tear due to heavy soiling of walls, floors, and windows due to a tenant. The Tax Agency rejected the deductions. The Federal Finance Court partially upheld the decision, finding that: 1) the extraordinary deduction requires that a rental property become technically or economically unusable, or its possible use be ...