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Old 12.02.2020, 10:36
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[Tax return] Apartment (+mortgage) abroad

Hi, I'm in the CH temporarily (B-permit) and we have an apartment abroad, when we used to live, now we're renting it.

I put the whole value of the property in the tax return and I also added mortgage value (for wealth tax)

I'm taxed on my rental income abroad, should I declare it on Swiss tax return too?

I see section (page 2, point 6) where I can put the numbers but again - should I declare income + expenses just like I did abroad?

I've got the mortgage, also monthly rent for building administration etc - do I have to collect and attach all the documents as a proof?

Or maybe I should declare property value for wealth tax purpose, but I can leave rental section empy as I pay rental tax elsewhere?

Thanks for any advice!
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Old 12.02.2020, 12:09
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Re: [Tax return] Apartment (+mortgage) abroad

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Hi, I'm in the CH temporarily (B-permit) and we have an apartment abroad, when we used to live, now we're renting it.

I put the whole value of the property in the tax return and I also added mortgage value (for wealth tax)

I'm taxed on my rental income abroad, should I declare it on Swiss tax return too?

I see section (page 2, point 6) where I can put the numbers but again - should I declare income + expenses just like I did abroad?

I've got the mortgage, also monthly rent for building administration etc - do I have to collect and attach all the documents as a proof?

Or maybe I should declare property value for wealth tax purpose, but I can leave rental section empy as I pay rental tax elsewhere?

Thanks for any advice!

Hi
1. You have to declare the taxable value of your apartment (=wealth).

2. You have to declare your rental income but if it is below the imputed rental income, the higher number will be considered as income.
3. There is a lump sum of 25% to be deducted from your rental income. Alternatively you can deduct effective maintenance costs. All documents have to be attached to the tax declaration.
4. Interest on your mortgage can be deducted under point 12 of the detailed tax declaration.


Cheers


Andy
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Old 12.02.2020, 12:54
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Re: [Tax return] Apartment (+mortgage) abroad

In my case, where we have income from oversea properties, the tax authorities ignore it as we have to declare and pay the relevant taxes abroad. Income from real estate is taxed in the country where the property is situated.

It still counts for wealth tax purposes though.
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Old 12.02.2020, 20:26
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Re: [Tax return] Apartment (+mortgage) abroad

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3. There is a lump sum of 25% to be deducted from your rental income. Alternatively you can deduct effective maintenance costs. All documents have to be attached to the tax declaration.

Possibly a typo. The lump sum percentage that can be deducted in Ct. Zurich is 20%.


The net taxable asset value of foreign property (tax value of foreign property less mortgage value) is used to determine the asset tax rate but is excluded from the asset tax calculation.


Be sure to complete a Steuerausscheidung (tax exclusion) form for the foreign property.
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Old 17.02.2020, 22:19
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Re: [Tax return] Apartment (+mortgage) abroad

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Hi
1. You have to declare the taxable value of your apartment (=wealth).

2. You have to declare your rental income but if it is below the imputed rental income, the higher number will be considered as income.
3. There is a lump sum of 25% to be deducted from your rental income. Alternatively you can deduct effective maintenance costs. All documents have to be attached to the tax declaration.
4. Interest on your mortgage can be deducted under point 12 of the detailed tax declaration.


Cheers


Andy
But do the tax people here check? One could put in very low figures for overseas properties and income and how would they ever know the difference?
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Old 17.02.2020, 23:27
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Re: [Tax return] Apartment (+mortgage) abroad

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But do the tax people here check? One could put in very low figures for overseas properties and income and how would they ever know the difference?
They ask for evidence for your valuation from time to time - e.g. a purchase contract, market valuation. Had to provide supporting information for a US property for my 2018 tax return (first tax return in Bern).
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Old 18.02.2020, 08:50
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Re: [Tax return] Apartment (+mortgage) abroad

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Hi
1. You have to declare the taxable value of your apartment (=wealth).

2. You have to declare your rental income but if it is below the imputed rental income, the higher number will be considered as income.
3. There is a lump sum of 25% to be deducted from your rental income. Alternatively you can deduct effective maintenance costs. All documents have to be attached to the tax declaration.
4. Interest on your mortgage can be deducted under point 12 of the detailed tax declaration.


Cheers


Andy
I think they will ask for these documents if they need. One does not have to send them also. One should not make it easy for these tax people. After all its from your tax dollar that they get paid!

Last edited by omtatsat; 18.02.2020 at 09:01.
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