Each Rented Condominium Must Be Assessed Separately as an Income Source

When determining whether an expense qualifies as immediately deductible maintenance or as capital repair costs to be spread over 15 years, it is crucial to assess whether the measures taken increase the utility value or extend the useful life of the property.

In the context of rental activity, the relevant benchmark for evaluating an increase in utility value or extension of useful life is the overall property as an income source.

However, for income from rental and leasing, each individual rental unit must be assessed separately to determine whether it constitutes an income source—particularly in the case of separately rented condominiums. This applies even when the units are located in the same building.

The fact that all the condominiums are part of the same property does not negate the need for individual assessment.

VwGH ruling of 26.09.2024, Ro 2023/15/0001