Entrepreneur's Toolkit: Apartment depreciation, VAT issues, and excise tax

A recent court ruling may offer a glimmer of hope for entrepreneurs and individuals seeking to deduct the depreciation costs of apartments from their taxable income. Previously, the "Polski Ład" reforms enacted by the previous government prohibited the amortization of residential properties, a measure that has remained in place despite changes in administration.

This prohibition affects both business owners and private landlords who rent out apartments or houses. They are currently unable to include the acquisition costs of these properties as deductible expenses through amortization. The ban also extends to taxpayers who had already established the right to amortize properties before the new regulations took effect.

Taxpayers are increasingly turning to the courts to challenge this ban. Their arguments often center on the violation of constitutional principles, specifically the protection of acquired rights and the prohibition of retroactive application of laws. These legal battles aim to overturn the current restrictions and allow for the deduction of depreciation costs, potentially easing the financial burden on property owners and investors.