Double household management after moving away from workplace?
March 9, 2010 | 20,00 EUR | answered by Matthias Wander
Hello,
I have the following question: Is it possible for me to claim tax deductions for a second household in my situation, due to my job? Or do I possibly need to switch my residences?
Here are the facts:
- I have been working for the same employer for about 8 years
- I used to live about 25 km (one way) away from my workplace
- 3.5 years ago, I moved to a location further away (85 km) from my workplace for personal reasons (relationship)
- I have bought a property there
- However, I am neither married nor do/did we have a common household
- I am now tired of the daily commute (about 1 hour one way) and the relationship has ended as well
- I want to keep my apartment
- I would like to rent a room/small apartment near my workplace
- I have a company car
Thank you in advance and best regards.
Dear inquirer,
Thank you for your inquiry, which I would like to answer based on the information provided and in the context of your situation as part of an initial consultation.
According to the highest court rulings, a double household is not only possible for married couples, but also for singles (BFH, judgment of 5.10.1994, VI R 62/90, BStBl 1995 II p. 180). For the tax recognition of a double household management, it is important that you maintain your own household, in which you are personally or financially involved, and have a second residence at or near your place of work for professional reasons (R 9.11 para. 3 LStR 2008).
For a single person, their own household is assumed when they continue to maintain their previous residence outside of their place of work and regularly spend time there. The own household is characterized by the closer personal relationships of the single employee to this residence. Personal relationships are expressed particularly in connections to individuals, such as parents, fiancés, friends and acquaintances, as well as in club memberships and other activities. Usually, the tax office will base its decision on the actual time spent in this residence. In order to be considered as the center of his life interests, the single person must spend at least twice a month there.
I hope this gives you an initial overview.
Kind regards,
Wander
Tax advisor
