Remaining useful life report: more depreciation (AfA) for your rental property – simply explained

Landlords deduct the building value of their property from their taxes every year – by law usually at 2 % per year, i.e. over 50 years. If the actual remaining useful life of the building is shorter, depreciation may be faster (§ 7(4) sentence 2 EStG). This is evidenced by a remaining useful life report. In about three minutes, this video explains how this works, what it can achieve and who it may suit.

What you will learn in the video

• Understanding building depreciation: only the building share is depreciated, not the land – the higher the building share, the greater the leverage.
• Worked example: a useful life of 25 instead of 50 years – in the example around €40,000 less income tax in the first ten years (simplified, 42 % tax rate). Total depreciation stays the same; it is only brought forward.
• Who it may suit: rented existing buildings, built roughly before 2000, no full refurbishment, a high building share and a high tax rate – and when it rather does not.
• Legal situation: the Federal Fiscal Court allows any suitable method, including a report under ImmoWertV, if it is reasoned for the specific property. The tax office decides case by case.
• Your next step: the free pre-check at afa-gutachten24.de – year of construction, condition and purchase price allocation are enough for an initial assessment.

Legal basis and sources (as of 7 October 2026)

• § 7 EStG – depreciation for wear and tear, in particular para. 4 sentence 2
• ImmoWertV, Annex 2 – modernisation and remaining useful life
• BFH, judgment of 28 Jul 2021 – IX R 25/19 (any suitable method)
• BFH, judgment of 23 Jan 2024 – IX R 14/23 (report under ImmoWertV suitable if reasoned for the specific property)
• FG Münster, judgment of 2 Apr 2025 – 14 K 654/23 E
• BMF letter of 1 Dec 2025 – IV C 3 – S 2196/00040/006/008 (revocation of the BMF letter of 22 Feb 2023)
• Opinion of the Bundesrat on the Annual Tax Act 2026 (JStG 2026), BR-Drs. 447/26 (resolution) of 25 Sep 2026

This video is an information and promotional video of the real estate appraisal office STRECKEL for its own services. It provides general information, is not tax or legal advice and replaces neither advice from a tax adviser nor a report for your property. Examples are simplified. Whether and to what extent higher depreciation is accepted is decided by the tax office case by case.