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Double household management after partner's relocation

November 1, 2010 | 20,00 EUR | answered by Michael Herrmann

Hello,

I have a short question regarding the double household management.

The current situation is as follows:

Since 2001, I have been living with my partner in our (still) shared apartment in location A. (The rental contract is in both of our names)
In 2007, I finished my studies, started a job in location B (300km away), and registered my second residence there.

For the past 3 years, I have been commuting back and forth between location A and B, and I have been able to deduct the double household management expenses from my taxes without any major issues. I have been able to provide the necessary evidence.

Now, my partner has also finished studying and will be moving to location C for work reasons starting in February 2011.
In this context, we have decided to give up apartment A (our current shared apartment) and relocate to a new shared apartment in location C.
My second residence in location B (the place of employment) would still remain.
The reason for this decision is that location C is where we want to build our future together / it is my partner’s hometown.

So, the new situation would be:

still 2 apartments

apartment in location A will be given up

apartment in location B (second residence for work) will remain

apartment in location C will replace the current shared apartment in location A; however, location C is also 220km further away from location B than location A; the rental contract would again be in both of our names

As we are not yet married, I see difficulties in maintaining the double household management, especially because the new distance between location B and location C is about 220km greater.
However, despite this additional distance, the weekly commuting time would only increase by 45 minutes each way, as the train connections on this route are optimized.

Therefore, my question is:

- Is it still possible to maintain the double household management. (even without being married)
- If not, what other options are available?

Lastly, I would like to mention that this situation is meant to be a temporary solution. Max. 2 years, until new opportunities arise for both of us at location C due to work reasons.

Thank you in advance for your feedback.

Michael Herrmann

Dear questioner,

first of all, thank you very much for your inquiry, which I would like to answer based on the information provided and in the context of your initial consultation. The response is made according to the description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.

A double household management exists when you are employed outside the place where you maintain your own household and also live at the place of employment. The establishment of the second household in the second residence at the place of employment establishes this double household management.

The relocation of the main residence does not lead to the termination of the double household management (BFH judgment of 4.4.2006, BStBl. 2006 II p. 714).

In the case of the judgment, the move took place within the same place or within the same municipality. However, even the relocation of the main residence to a more distant location is not harmful and does not change the existence of the double household management. The relocation of residence should not be seen as a new establishment of a double household management, which would not be recognized due to private reasons. Rather, the original establishment of the second household was prompted by the out-of-town job placement, and this continues even after the privately motivated relocation of residence (FG Düsseldorf of 12.1.2006, EFG 2006 p. 563; as well as FG Munich of 2.5.1994, EFG 1984 p. 547; BFH judgment of 29.11.1990, BFH/NV 1991 p. 531).

I hope that with this information, I have provided you with a sufficient overview of the situation in the context of your initial consultation and remain

Yours sincerely

Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax consultant