Rental of a legacy property – deemed acquisition costs

If a building belonging to so-called “legacy assets” is first used to generate income after December 31, 2012, the deemed acquisition costs pursuant to § 16 para. 1 item 8 lit. c of the Austrian Income Tax Act (EStG 1988) may only be used as the basis for depreciation if the property is being used to generate income for the first time.

The term “first-time” income generation is to be interpreted in relation to the first-time use of the building itself for income-generating purposes.

This criterion refers to the property, not to the individual taxpayer.

VwGH 22.02.2024, Ra 2022/13/0086