Costs for installing a lift

Expenses for installing a lift in a private home were previously not recognised as exceptional costs. This also applied to the addition of a lift tower to an existing building, as such construction measures were considered to increase value, which could also benefit non-disabled individuals.

However, according to more recent case law of the Federal Fiscal Court (BFH), the equivalent value and a possible market advantage no longer play a significant role (BFH ruling of 22.10.2009, BStBl. 2010 II p. 280; BFH ruling of 24.2.2011, BStBl. 2011 II p. 1012).

The Cologne Fiscal Court recently recognised the costs of 65,000 Euro for installing a lift as exceptional costs, as the installation of a cheaper stairlift was not possible for technical reasons (FG Cologne, ruling of 27.8.2014, 14 K 2517/12).

In principle, expenses for medically indicated measures are deductible as exceptional costs without the need to check the compulsion of the measure or the costs in each individual case. The decisive factor is that the measure is medically justified – it does not have to be limited to minimum provision.

The tax assessment follows the medical necessity, unless there is an obvious disproportion between the costs and the required expenditure. In the case of the 65,000 Euro for the lift, there was no such disproportion, especially as the installation of a cheaper stairlift was technically not feasible.

The Federal Fiscal Court has also determined that a lift is considered a "medical aid in the strict sense" used exclusively by sick or disabled persons to alleviate their suffering. No prior medical certificate is required for such aids (BFH ruling of 6.2.2014, VI R 61/12).

Note: A full tax deduction in the year of expenditure may be ineffective if the exceptional costs exceed the income from which they are to be deducted. In this case, the tax relief effect is lost. The tax authorities do not allow the costs to be spread over several years (R 33.4 paras. 4 and 5 EStR).

The Federal Fiscal Court has confirmed this strict regulation: Exceptional costs can only be claimed for tax purposes in the year in which they are incurred. It is not possible to spread high costs, such as for disability-friendly home modifications, over several years, even if the costs are only partially effective for tax purposes in the year of payment (BFH ruling of 12.7.2017, VI R 36/15).