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Renting commercial property (part of own building)

EVC
15/11/2022
Vraag

Dear

My friend and I would like to make private purchases of a building. It consists of commercial premises, an apartment for rental and a duplex where we would live ourselves. We will take out the loan privately.

Can I include the use of the commercial property in my expenses? I currently rent a property from someone, and the rent is a monthly expense. If this rent is no longer payable, I will no longer have any expenses, which will make my results much more positive.

I assume that I can include expenses incurred for furnishings or minor renovations as costs. But what about the rent?

Thank you in advance for an answer.

Kind regards,

Ellen

Hmm, that seems a bit more complex to me... Wouldn't you have to declare the part of the building you purchase as an investment and then depreciate it? But then, if you sell it later (supposing you do), that would also be a sale of an investment and extra turnover. There may be other options, but I can't think of any off the top of my head :) You could contribute part of the interest on the loan, but that's not a significant amount in terms of cost. Perhaps you could consult an advisor?

I am a sole proprietor, so i don't know if i can include a building as an investment?

I may indeed be able to include part of the interest. I will consult an expert on this.

But does that mean that everyone who uses part of their home for their business, for example, does not contribute the costs from that space?

Yes, yes! Be sure to contribute all the costs you incur from that space!

Decoration, furniture, fittings, lamps, paint, cupboards....

I was only talking about the actual cost of the building itself, i.e. the purchases, because you said you were going to buy it privately. I thought you wanted to include x amount of the purchase cost of that building in your accounts and that that was what it was about.

But if you're talking about all the additional costs, apart from the actual purchases, I would definitely include those!

Yes, I do include the costs of furnishings, furniture, etc. in my expenses now that I am renting, and I will continue to do so afterwards.

But will the cost of rent that I currently have be completely eliminated if I have my own home with commercial premises?

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