Deductible costs when terminating the double household management
September 12, 2011 | 20,00 EUR | answered by Oliver Burchardt
A recognized double household management was ended in November 2010 with the move of my wife to Munich. We file a tax return together.
2010 situation:
- Husband's main residence and workplace in Munich, two-room apartment 58 m2
- Berlin, husband's secondary residence, wife's main residence and workplace, two-room apartment 58m2
- Marriage in June 2010
- 1st move of husband within Munich in early September to a three-room apartment 80 m2. The lease for the old apartment ends at the end of September 2010. This resulted in a month of rent payment for both the old and new apartments.
- 2nd move from Berlin to Munich at the end of November 2010: Wife's move, husband's secondary residence discontinued
Which of the costs listed below can I now deduct in our tax return and justify with the termination of the double household management?
1. I read that for larger apartments for one person, only 60 m2 are eligible. Therefore, my 3/4 (60/80) approach for the double household management from Sept. 2010 - Nov. 2010:
Option a) 9x costs of old apartment + 2x 3/4 x costs of new apartment
Justification: tense housing situation in the Munich real estate market
Option b) 8x costs of old apartment + 2x 3/4 x costs of new apartment
Can option a) with overlapping or b) without overlapping rental costs be claimed?
2. Brokerage costs for the move within Munich (also justified by the tense real estate situation in Munich)
3. Moving costs within Munich (invoice paid in cash)
4. Moving costs for my wife from Berlin to Munich (invoice paid by bank transfer)
5. Clearing and disposal costs
6. Furnishing costs (mainly DIY materials) incurred in September - November for the Munich apartment
Dear inquirer,
Thank you for your inquiry, which I am happy to answer as part of an initial consultation.
Please note that the tax assessment is based on the information provided. Changing, adding, or omitting information can significantly alter the tax assessment.
1. Tax authorities and the Federal Fiscal Court now only consider the costs of a 60sqm apartment as deductible. Therefore, the costs of the new apartment in the context of double household management are only partially deductible (60/80). I assume that the previous double household management was recognized because you commute to Berlin, where your main residence is located. However, since your wife has now moved to Munich, the tax authorities may argue that your shared main residence is in Munich. In that case, the costs for your Munich apartment would not be deductible (on the other hand, the costs for the Berlin apartment would be deductible).
2. The additional costs for the old apartment (i.e. double rent and agency fees) are not deductible. These costs are not incurred for professional reasons but are attributable to your personal lifestyle. The tight housing situation in Munich does not make them deductible. Therefore, you can only claim option B.
3. The moving costs of your wife are fully deductible (including the clearing and disposal costs of the old apartment) if your wife has taken up a new job in Munich, thus having a professional reason for the move. In addition to the moving costs, you can also claim a moving cost lump sum of EUR 1,271.
4. The furnishing costs for the new apartment are not deductible, as the move to this apartment is not for professional reasons.
I hope that these explanations have been helpful to you in the context of your query.
Kind regards,
Oliver Burchardt
Tax advisor
