Higher depreciation, lower tax burden — and fully compliant?
A shorter actual useful life can make this possible. Those who know their depreciation potential and can substantiate it properly can depreciate buildings significantly faster than the statutory standard rates allow. 💡🏢
Standardized Depreciation Rates — Simple and Flat
For buildings, fixed depreciation rates (AfA) of 2%, 2.5%, or 3% per year apply. These rates are applied regardless of the actual condition or age of the building.
📌 However: in exceptional cases, these rates can be exceeded if the actual useful life is shorter. This results in higher depreciation and, consequently, faster tax relief.
Shorter Useful Life = Greater Depreciation Potential
For tax depreciation, the determining factor is not the year of construction or the lease term, but the actual useful life of the building. It reflects how long a building can be expected to be used economically. Depreciation can then be spread over this shorter period.
This is particularly relevant for:
- older existing properties
- buildings with economic or technical obsolescence
- Change of ownership, as the depreciation period for tax purposes starts anew 🚀
Applying a shorter useful life is an option and can also be exercised at any time for existing properties.
How to Substantiate a Shorter Useful Life
A shorter useful life must be convincingly and verifiably demonstrated.
Key factors include:
- technical wear and tear of the load-bearing structure
- economic obsolescence
- legal restrictions on use
❌ Not sufficient are:
- mere construction defects
- the age of the building alone
- a non-binding intention to demolish
Proof is usually provided by an expert report. According to the Federal Fiscal Court (BFH), no specific method is required. The only requirement is that the chosen approach convincingly accounts for the relevant factors.
📌 Important: The report must be prepared by an expert who has personally inspected the property. The purpose of the report must explicitly be to substantiate a shorter actual useful life.
Conclusion: Use Depreciation Potential Strategically
A shorter useful life can unlock significant depreciation potential and lead to higher depreciation. A professionally sound assessment and qualified tax guidance are decisive.
Get Your Property Checked 📣
Do you want to know if more depreciation is possible for your property?
👉 Contact us. SKS Steuerberatung assesses your depreciation potential and guides you securely through the entire process — digitally, structured, and practically oriented.
