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Deducting craft costs in the tax return: What to look out for

2021-09-25T12:23:59.273Z


Whether during renovation or due to repairs: In the household there are always craftsman costs. Some of it can be deducted from tax.


Whether during renovation or due to repairs: In the household there are always craftsman costs.

Some of it can be deducted from tax.

A defective dishwasher, clogged pipes or painting work: There are numerous reasons to call a craftsman - especially if the tasks are too complicated for the layperson.

Tenants have to dig deep into their pockets every now and then.

In some cases, however, the craftsman's costs can be deducted from your tax return *.

Read here whether this is the case for you and what to look out for.

Rented apartment or new building?

When you can deduct craft costs

In order to be able to deduct craft costs from the tax, certain

requirements

must be met.

This includes:

  • You award the contract as a private person.

  • The work takes place on your property, in your self-used apartment or in your own house.

  • It concerns renovations or repairs.

    New construction measures are not deductible.

Which craft costs can be deducted from the tax

As mentioned, the craftsman costs may only include maintenance or renovation work.

This includes the following:

  • Repair of household appliances

  • Renovation of the bathroom or kitchen

  • Maintenance of the heating

  • Painting and wallpapering

Apart from that, there is also a tax reduction for

space expansions

, as the portal

finanztip.de

explains.

This can be, for example, the subsequent construction of an attic or the construction of a winter garden.

According to the online portal

taxfix.de,

experts or disposal services are not deductible if they are not part of the renovation

measures

.

Find out here

: Liability insurance deductible in tax returns?

This is how it works

How much of the costs can be deducted from the tax?

When filing

your tax

return, you can

deduct

20 percent of the craftsman's wages

from your tax liability. You can also state the craftsman's travel and equipment costs, as well as consumables that the craftsman uses - such as adhesive tape. Material costs for paints, wallpaper and the like, however, are not deductible. Therefore, when making the invoice, you should always make sure that

the wages and material costs are listed separately

. If this is not the case, you should ask the craftsman for it afterwards. However, you do not have to pay attention to the fees for the chimney sweep - you can deduct these costs completely from the tax. You can save

a maximum of 1,200 euros annually

Enter in the tax return (§ 35a EStG).

But always make sure that you pay the bill by bank transfer.

Invoices paid in cash are not recognized by the tax office.

The date of payment is also important for the tax return and not the date on which the invoice was issued.

For example, if you received the invoice in December 2020 but did not pay it until January 2021, you can only deduct the costs for the year 2021.

Also interesting

: How and where you state account management fees in your tax return.

Where are the craftsman's costs stated in the tax return?

Craftsman services are

entered in line 75 on page 3 of the cover sheet

under the section "Household services, services, craftsmen services".

The gross invoice amount is always specified here.

(fk) * Merkur.de is an offer from IPPEN.MEDIA.

Source: merkur

All life articles on 2021-09-25

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