Advertising Expenses / Amortization
The total financial expense in purchasing a condominium is divided as follows and will be treated for tax purposes as follows:
- Ø cost of acquisition of the property
Attributable to the land portion of the purchase price cannot be amortized for tax purposes.
- Ø Cost of Alt-building
The reduced proportion of the plot purchase price yields the building stock. It can be written off linearly annually with 2.5%. The distribution of groundwater and soil-building substance to proportion-share given by the competent tax office.
If the condo acquired for the purpose of personal use, we recommend that the buyer discusses his individual tax situation before signing a purchase contract with its relevant tax advisor.