The Monument Protection AfA is an increased depreciation for monument-related expenses in real estate. The legal basis is Section 7 I of the Income Tax Act (EstG) burg verkauf.
For eight years, you can deduct annually nine percent of the costs you have incurred for the professional restoration of the property. After that, depreciation amounting to seven percent of the costs is possible for a further four years. Thus, after twelve years, the entire renovation costs will have been written off for tax purposes. If you use the listed property yourself, the listed property depreciation amounts to nine percent for nine years.
As an investor, therefore, you benefit to the maximum from the increased depreciation for historic properties. In order to benefit from the advantageous monument protection AfA, it must be ensured that the renovation work is not started until the purchase contract has already been concluded. In addition, you cannot calculate Monument Protection AfA on costs that have been covered by grants. A further criterion for the granting of monument protection depreciation is a written confirmation from the responsible monument authority that the structural measure is necessary.