Double household management - living in the parents' house
May 12, 2020 | 40,00 EUR | answered by Steuerberater Knut Christiansen
The following situation:
I am married, have children, and live with my family in location A. I am employed and the company is located in location B.
Location B is approximately 600km away, so when I am there, I stay near my parents' house. The house has 2 levels and I have a few rooms for myself on the ground floor, there is no separate kitchen. Therefore, I regularly use their upstairs facilities. My parents are retired and have not been taxable so far.
I want to cover my share of the costs myself, so we have agreed on a cost contribution of 450 euros per month / 5400 euros per year.
My question: I would like to enter the amount of 5400 euros as housing costs within the framework of the double household management. At the same time, it should not be considered as rental income from my parents. I essentially live with them and contribute to the costs. The money is transferred monthly.
Is this generally acceptable, or if not, how should it be arranged?
Thank you.
Good morning,
Thank you for using frag-einen.com. I would like to answer your question as part of an initial consultation. Please note that this forum cannot replace personal advice, especially in terms of fees, but only serves as an initial tax assessment.
In general, you could only claim costs for rent and utilities that arise in the context of a double household management. If you pay your parents for the living space, this constitutes both rent and reimbursement for utilities. Your parents would therefore have to declare rental income.
If it is only a contribution to household expenses, it must be made clear that no basic rent is to be paid. However, it would need to be explained how the 450 EUR/month are composed. Because then only utilities for the apartment that represent a pass-through item for your parents (advance payment for electricity, water, sewage, heating, insurance, etc.) could be reimbursed, so that no income is generated. Contributions to food costs, for example, would not be deductible in the context of double household management, as these costs are privately motivated. Only flat-rate meal expenses can be claimed for the first three months of a double household management.
So, you or your parents would need to prove that the utilities for the apartment are so high that the amount you pay of 450 euros per month is plausible and does not lead to an overcompensation of the advanced utilities.
I hope this answers your question, otherwise feel free to ask for further clarification at no cost.
Best regards,
Knut Christiansen
Tax consultant
