Anyone claiming double housekeeping must demonstrate that they actually contribute to the cost of the household. This also applies to children who have an apartment in their parents' house.
Hanover (dpa / tmn) - Children who have an apartment in the parents' house and their center of life and rent a second apartment at their place of work can deduct the costs of double housekeeping against tax. However, you must contribute to the cost of the parental home.
They must also be able to demonstrate this participation. A regular rental payment is not important, the Lower Saxony Finance Court decided (file number: 9 K 209/18).
The tax offices are often skeptical about multi-generation houses and double housekeeping. "Especially when it comes to unmarried children," says Isabel Klocke of the Taxpayers Association. For this reason, evidence should be collected that can be used to prove that the child has contributed to the cost of living locally, advises Klocke.
One-off payments are also considered a participation
In this specific case, a single worker had lived in an apartment in his parents' house with his brother. At the place of work he had also rented a two-room apartment. There was no rental contract for the apartment in the parents' house or regular rent payment.
In a month, the son transferred 1200 euros as cost sharing and another 550 euros for window renovation. He was also able to prove that he had bought groceries in his home town for around 1,400 euros a year. In his tax return, he claimed double budget management, which the tax office did not recognize. The son had contributed insufficiently to the cost of living.
The Finanzgericht saw this differently: From the judges' point of view, there is a financial contribution to the household costs even if it takes the form of one-off or exceptional payments. However, they cannot be insignificant. With the plaintiff's payments, which were above a limit of 10 percent, this is not a problem, according to the Lower Saxony Finance Court.
Case pending before the BFH
However, the judgment is not yet final. The Federal Fiscal Court now has the opportunity to assess the case in second instance under file number VI R 39/19. Those affected, who do not recognize the double budget management in a corresponding case, can rely on this judicial procedure. Then the case remains open until a decision by the court. "For reasons, the file number at the Federal Fiscal Court should be mentioned," Klocke concludes.
Decision Finanzgericht Niedersachsen