Abschreibung

Depreciation
The decrease in value of a property can be deducted annually at a certain percentage as a tax loss from the income from renting and leasing. A distinction is made between straight-line depreciation (annually constant depreciation amounts) and declining balance depreciation (annually decreasing depreciation amounts). In the declining-balance form, the tax-reducing effect is higher due to the initially higher depreciation in the first years. While only straight-line depreciation is possible for old buildings, there is a right to choose between the two forms of depreciation for new buildings.