What to do with an old house from parents?

[Giff]

When I renovated a house abroad the zh tax office accepted the renovation costs as deductions on my income

[Guillaume_GVA]

@the_p

The recommendation was to make an expensive (but value preserving) renovation on the real estate over multiple years, creating costs far higher than the imputed income, resulting in a loss, and thus reducing the tax rate applied to one’s CH income.

Tax treatment may vary 1) from one canton to another 2) if there is an official deemed rental income abroad or not.

Whitout an official deemed rental income, the rental income will be a %-tage of the property value. This deemed income will be considered net of maintenance and repair costs and the tax authorities (e.g Geneva and Vaud) will not allow further deduction.

They are recent case laws from the cantonal and Federal courts on this topic.

Of course, if the property is rented out, expenses will be allowed in the limits of the law.

I’d analyse this option carefully before going further.

[San_Francisco]

@lowyield

Moreover your parents will be in their 70-80s and, in several southern european cultures, it is guaranteed that at least one of the children will be heavily involved in caretaking

Parents in their 80s have reached or surpassed the average life expectancy - you can expect to inherit their own residence rather sooner than later.

Besides, with their increasing caretaking needs, it makes sense to live in the same property or least close nearby. So unless the second property is quite close nearby…