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Is buying a fitted kitchen a repair and modernization measure?

April 11, 2014 | 30,00 EUR | answered by Michael Herrmann

My question relates to the calculation of the 15% threshold, which distinguishes immediately deductible maintenance expenses from subsequent production costs.
My husband and I bought an apartment. The 15% threshold of the acquisition costs of the building + associated ancillary costs (notary, property transfer tax, broker) amounts to 53,400 EUR. So we can invest approximately 8,010 EUR net to stay within the 15% threshold and thus be able to deduct the costs immediately as maintenance expenses. We have invested 7,800 EUR in maintenance expenses (thus within the 15% threshold), but additionally 2,800 EUR for a new fitted kitchen that did not replace an old one.
It is no longer possible to separate the values for sink and stove or other appliances, because it was a complete price.
I am aware of the following: "The expenses for fitted kitchens are only considered maintenance expenses if old, previously existing kitchens are replaced. Only then is the 15% threshold affected."
Is it correct that expenses for new kitchens are seen as "expansion expenses" and therefore cannot fall under the 15% threshold? Therefore, could we write off the kitchen as a "stand-alone asset" in line 33 or 35 at 10% annually, in addition to the maintenance expenses of 8,010 that we can deduct immediately?
My concern is not that I have to write off the kitchen over 10 years, but that by buying the kitchen, the measures are overall considered maintenance and modernization measures, so that all costs (8,010 + 2,800) count towards acquisition or production costs and must be depreciated annually by 2%.

Michael Herrmann

Dear inquirer,

First of all, thank you for your inquiry, which I would like to answer based on the information provided and in the context of your effort within a initial consultation. The response is based on the description of the situation. Missing or incorrect information regarding the actual circumstances can influence the legal outcome.

The acquisition of the kitchen is a situation that needs to be assessed independently. A separate asset is being acquired, which is to be depreciated independently over 10 years.

As you have already recognized, this cannot be considered maintenance expenses, as no kitchen is being replaced. This analysis only applies to fitted kitchens as described below.

However, there can also be no "extension expenses" involved, as the apartment is not being "extended" by the acquisition of the kitchen. Your fitted kitchen does not trigger additional construction costs. For this to happen, the kitchen would have to be connected to the apartment in such a way that both (kitchen and apartment) become inseparable, i.e. could not be removed without significant damage. The kitchen would have to become part of the building. This is not the case with a "normal" fitted kitchen in the price range described.

I hope that with this information, I have provided you with a sufficient overview of the situation within the scope of your effort and this initial consultation.

Kind regards,

Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax advisor