Hello,
I have a tricky question. Our building permit application is in progress, and the authority has now responded, requesting some additional information. Among other things, they asked about our hobby room / secondary apartment, which we initially registered as an office in order to possibly claim it on our taxes later, since I work from home. The room is just under 30m² (320 square feet), and the authority now wants to know if we use it for commercial purposes. Of course not, as I mentioned, the only idea was to make it easier to deduct as a home office later.
However, we are installing utility connections for a secondary apartment in this hobby room / secondary apartment anyway, and it will be a finished basement living space. Meanwhile, the intention has developed to rent out the secondary apartment later. To be able to claim this on taxes, the secondary apartment would probably need to be declared as such in the building application right from the start, for two reasons:
a) for better KfW funding (100,000€ (about $110,000) per housing unit)
b) for the deductibility of the secondary apartment in taxes.
As I mentioned, the planner recorded it as an office and did not include any utility connections. So, the drainage plan is also not accurate. This would now need to be changed. However, the planner is worried about alarming the authorities and prefers not to make changes to ensure quick approval.
Question: Should we insist on making these changes now, or can we argue this later with the KfW regarding funding and with the tax office? Honestly, I’m quite skeptical about that... and what could happen if we do make the change now? Would it mean a complete new application?
I have a tricky question. Our building permit application is in progress, and the authority has now responded, requesting some additional information. Among other things, they asked about our hobby room / secondary apartment, which we initially registered as an office in order to possibly claim it on our taxes later, since I work from home. The room is just under 30m² (320 square feet), and the authority now wants to know if we use it for commercial purposes. Of course not, as I mentioned, the only idea was to make it easier to deduct as a home office later.
However, we are installing utility connections for a secondary apartment in this hobby room / secondary apartment anyway, and it will be a finished basement living space. Meanwhile, the intention has developed to rent out the secondary apartment later. To be able to claim this on taxes, the secondary apartment would probably need to be declared as such in the building application right from the start, for two reasons:
a) for better KfW funding (100,000€ (about $110,000) per housing unit)
b) for the deductibility of the secondary apartment in taxes.
As I mentioned, the planner recorded it as an office and did not include any utility connections. So, the drainage plan is also not accurate. This would now need to be changed. However, the planner is worried about alarming the authorities and prefers not to make changes to ensure quick approval.
Question: Should we insist on making these changes now, or can we argue this later with the KfW regarding funding and with the tax office? Honestly, I’m quite skeptical about that... and what could happen if we do make the change now? Would it mean a complete new application?
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