Advertising costs: How households save on building loans

Many households opt for a building loan against the background of low borrowing costs.

after all, your own four walls promise certain financial security, especially in old age.

Before that happens, the home costs money.

Debt interest is to be shouldered for the building loan.

Depending on the general conditions, the interest payments quickly amount to several tens of thousands of USD.

How can the costs for advertising costs be accommodated?

Advertising costs and construction money – how does it work?

Advertising costs and construction money - how does it work?

In principle, a property that is used by the owner is usually not a tax-saving model, since debit interest cannot be deducted here. But: If you use the house or apartment to generate income, the situation is different.

The background to this is the possibility of claiming expenses for professionally induced purchases as advertising costs or operating costs (for self-employed and freelancers). When can a property that is financed through a construction loan enable this option?

  • For professional reasons there is a transfer from Berlin to Hamburg. Daily commuting is eliminated due to the distance, you decide to buy a small 2-room apartment. Since the purchase is being pushed to secure the income, the interest on the debt can be claimed as advertising costs.

Rent out property – interest and depreciation

Rent out property - interest and depreciation

The professionally used second home is one aspect of how you can profit from the purchase of real estate through the advertising costs. What about the rental factor? A cheaply acquired apartment building or the expanded attic are conceivable scenarios that lead to a rental.

In this connection, too, the interest for the building finance is deductible via the advertising costs. However, landlords can pull out completely different registers in the tax return.

For example, the tax offices assume that the property will be “consumed by value”, which will allow depreciation to be deducted. The latter can generally be claimed over two percent of the acquisition costs per tax year. Various operating cost items are also deductible in connection with a rental.

Commercial use: operating expenses instead of advertising costs

Commercial use: operating expenses instead of advertising costs

What does the tax deductibility look like for (partial) commercial use? If you use your own house in parts as an office or warehouse, you can set expenses such as interest on operating expenses. Here, however, it must be ensured that depreciation can turn into a boomerang when a business is dissolved.


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