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Abolition of own-rental value: Who benefits and who loses

residential property owners pay taxes on income you never received. Is the rental value refers to the self. Especially the elderly who have paid off your mortgage largely, felt, therefore, a tax burden. But also younger people, who pay off their debts in good faith, are at a disadvantage because they are not allowed to deduct from taxable income less interest on debt. The incentive for debt is an important reason why the Federal policy for more than two decades, the self-rental value to be abolished. But all Attempts have failed often in the Parliament and at the ballot box.

Now, a new draft for Consultation. He is promising because so far, from the important interest groups, no fundamental opposition has been announced. At first glance, the solution seems to be simple. Today, residential property owners pay tax on the self-rental value as income. In return, you may deduct maintenance costs and interest on debt. The fictional is the rental value, you must also be maintenance painted costs and interest on debt. Because in the end, house owners are not supposed to receive at the expense of the state Treasury and generous tax breaks.

Five variants developed

But the matter is more complex than it appears at first glance. The draft for Consultation of the economic Commission (CTE) of the Council of States yesterday presented shows. For the debt-interest deduction, it has developed five variants. On the basis of the consultation responses, one of which is to be selected. Tricky this is, because today, in addition to the mortgage interest rate other debt interest deductions are possible. In addition, the above-mentioned systematic implementation of the state would not only prevent Yield losses, but for the long term, even for lush more revenue.

In the case of such a Reform, there are winners and losers. For the above-mentioned pensioners with lower income and a smaller mortgage, the abolition of own-rental value would be a boon. Some of you have trouble to Finance the tax on the fictitious income of your own-rental value. Tend to be in the advantage of people in cantons with a high income tax burden, as the self falls rental value for more. In this context, it is to be noted, however, that the cantons shall fix the amount of the notional rental value differently.

The big loser of the Reform would be people, in addition to which the liabilities are also the high investment income from securities.

Uncomfortable with the change in the system for young families who have little money would be. For you it would be more difficult to purchase a house. Thus, a significant barrier arises, the draft provides a first consumer deduction. For families it is in the first year, 10'000 Swiss francs for individuals and 5000 francs. This deduction decreases annually over ten years to zero. The Problem is, according to the assessment of Pirmin Bischof, President of the stand ätlichen WAK, defuse. First-time buyers, the accumulate with an expensive property with high debt, with the new solution, however, is at a disadvantage because they have to Finance interest on debt that you cannot deduct for tax purposes.

The big loser of the Reform would be people, in addition to which the liabilities are also the high investment income from securities. Because today, it is possible to make in addition to mortgage interest, other interest on debt to the extent of the assets income tax-deductible. Also an entrepreneur, and the debt for the business, may have to take disadvantages. The stand ätliche CTE has recognized this Problem and a variant developed, the entrepreneur is relieved. However, whether these will prevail in the consultation process is still open.

The current draft text in March in the consultation process. If everything runs smoothly, to advise the Parliament in the winter session the end of the year on the bill. The template finds a majority and there are no delays, could be abolished by the self-rental value of 2021.

template Overview

presented to The economic commissions of the Parliament yesterday a draft for Consultation on the abolition of own-rental value. This Essentially contains the following points:

– The self-rental value for owner-occupied property will be abolished. Except for second homes, among other things, because this would result in the mountain cantons to significant Tax losses.

– homeowners are not allowed to make the maintenance costs are tax-deductible. Expenditure for conservation, energy savings (energy renovation), environmental protection and Dismantling will not be permitted in the case of Federal tax deductions. The cantons may, however, make exceptions.

– first, the acquirer can make a deduction that decreases within a period of ten years gradually to zero. For families, the maximum amount of 10 000 is, in the case of individuals 5000 francs.

For interest on debt are five variants. One of them must prevail in the consultation process. All variants are intended to reduce the incentive for the debt. The strictest is the one with a consistent absence of a debt interest deduction. Politically, she is not likely to have much of a chance. More promising are two variants in which the debt interest deduction on residential property-oriented: The deduction may not exceed in this case the income from the real estate . One of them also favour the owner of the company. In two further variants of interest tax deductions are allowed for debt to the extent of 100 percent and 80 percent of all taxable income. In the case of an assumed long-term interest rate of 3.5 percent, the different versions bring to the Federal expected additional income from 30 to 670 million Swiss francs a year. In the case of the cantons, the range is between -130 million and 1.35 billion Swiss francs.

(editing Tamedia)

Created: 15.02.2019, 18:51 PM

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