Inflow-outflow principle for rentals

Inflow-outflow principle explained: when rents and costs count for tax purposes, 10-day rule for the turn of the year, exceptions under Section 11 EStG, and example.

FAQ

Can I prepay interest for the next year?

Prepayments are generally deductible in the year of payment if they are economically reasonable. For prepayments for more than five years, the distribution according to Section 11 (2) Sentence 3 EStG applies. Have large prepayments checked for tax purposes beforehand.

Does the principle also apply to a GmbH?

No. Companies that prepare a balance sheet determine profit on an accrual basis, regardless of the payment date.