Maintenance expenses and grants
October 6, 2021 | 40,00 EUR | answered by Steuerberater Knut Christiansen
Hello,
last year I had the heating system in the house I rented replaced and received BAFA funding as a grant (in this case 45% of the costs). The installation and invoicing for the heating system took place in 2020, the BAFA approval was also received in 2020, but the payment of the grant was made at the beginning of 2021. For the tax return, I have the following questions:
- Do I enter the received grant for 2020 or 2021 (I assume in line 19 of attachment V)?
- How should the BAFA grant be taken into account if I want to spread this maintenance expense over several years?
Good morning and thank you for using frag-einen.com!
Regarding your question, I would like to provide the following feedback:
The subsidy from BAFA should be recorded in the year it is received. In your case, this would be in 2021.
When it comes to distributing the costs, the following applies:
In the first year, you can claim 1/5 of the costs. In the 2nd year, you reduce the remaining 80% by the subsidy and spread the rest over the 4 years. If you want to distribute the costs over a shorter period, you can adjust accordingly.
I hope this answers your question, if not please feel free to reach out again.
Best regards,
Knut Christiansen
Tax Advisor
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