In a recently published decision, the Supreme Tax Court held that an employee, in addition to the deduction of expenses for the rented apartment as double-household relief, can also claim the costs for a parking space as income-related expenses.
In the case of double household abroad, it must be decided through an overall assessment of the objective circumstances of the individual case whether and to what extent accommodation costs are necessary. However, the Supreme Tax Court held in the case of an official residence assigned under civil service law that the actual amount of accommodation costs at the foreign place of employment are always deductible as income-related double household expenses.
Expenses for an apartment are only deductible as double-household expenses incurred in advance if the taxpayer has made a conclusive decision to use the apartment in the future as part of a double-household deductible for tax purposes. Whether this is the case must be decided through an overall assessment of the objective circumstances of the individual case.
The Supreme Tax Court has held that an employee moving to take up a new job may deduct the additional rental cost incurred in maintaining two homes for a temporary period as a business expense.
