(2021) When can I deduct accident costs?

You can deduct the costs of an accident as business expenses if the damage occurred during a work-related journey. Work-related journeys include, for example:

• Journeys between home and workplace
• Business trips or off-site work
• Journeys as part of maintaining a second household
• Journeys during a work-related move
• Journeys during professional training

The question of fault is not relevant to the deductibility of accident damage. This also applies if you have to pay a fine as a result of the accident. However, the misconduct must be within the scope of the professional objective, and alcohol must not be involved.

Note: The tax courts and the Federal Fiscal Court consider accident costs to be covered by the travel allowance. However, the tax authorities have repeatedly instructed tax offices to recognise accident costs in addition to the travel allowance if they occur during a journey between home and the primary workplace or on a family commute to be taken into account. This was most recently stated in the BMF letter dated 31.10.2013 (BStBl 2013 I p. 1376), under number 4. The BMF can confidently rely on the legislator, as the explanatory memorandum to the amendment of § 9 para. 2 EStG also states that "accident costs are to be taken into account again as extraordinary expenses in addition to the travel allowance" (BT-Drucksache 16/12099 dated 03.03.2009, pages 6 and 8).