Buildings not constructed on own land must be depreciated like own buildings

According to a decision of the Federal Fiscal Court dated 25 February 2010 (IV R 2/07), construction costs incurred by a taxpayer must be depreciated according to the general depreciation rules even if the building is not constructed on the taxpayer’s own land. This rule applies independently from the terms of any agreement relating to the use of the land. The determination of the depreciation period, therefore, must be made regardless of the period under the lease agreement for the land. Buildings generally are depreciated over a period of 33.33 or 50 years.

Ansprechpartner

Dr. Bettina Lieber | Düsseldorf
Petra Peffermann | München