Special expenses for family members in need of care
August 29, 2013 | 50,00 EUR | answered by Dr. Yanqiong Bolik
My mother, who is 89 years old, has moved into a nursing home for dementia patients (care level II); she used to live in a small home. As the attorney-in-fact for her financial matters, I have taken on the task of renovating the house in order to rent it out for her, as she only receives a minimal pension as a former self-employed individual and must finance her care home placement from her savings and rental income. Can I deduct the renovation costs as special expenses for tax purposes?
Dear inquirer,
Thank you for your inquiry, which I am happy to answer taking into account your effort and the rules of this platform.
Please note that my explanation is based on the facts presented, and that adding, omitting, changing information or the ambiguity of the information can change the tax result. Please be aware that this does not replace individual comprehensive advice.
Deductible expenses are those expenses that are neither operating expenses nor advertising costs. According to your description, the renovation expenses are incurred to generate rental and leasing income. Therefore, these expenses are incurred in connection with income generation. In order for the expenses to be deductible as advertising costs, your mother must also bear these expenses, as the rental income is attributable to her.
I hope I was able to assist you.
If there are still uncertainties, please feel free to use the follow-up function.
Best regards,
Dr. Yanqiong Bolik
Tax consultant
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 2132 1815
Email: steuer@zdbz.de
www.steuerberatung.dr-bolik.de
