Costs for installing a lift

Previously non-deductible – now recognised for tax purposes

For a long time, the costs for the installation of a lift or construction of a lift tower in a private home were not recognised as extraordinary expenses. The tax authorities argued that such building measures were value-enhancing and could also be used by non-disabled individuals.

However, this has changed.

New BFH case law: Value is no longer decisive

The Federal Fiscal Court (BFH) has made it clear in several rulings that the increase in value or a possible market advantage from the measure no longer plays a significant role:

• BFH ruling of 22.10.2009, BStBl. 2010 II p. 280
• BFH ruling of 24.02.2011, BStBl. 2011 II p. 1012

The decisive factor is now: medical necessity.

Cologne Tax Court: Lift recognised as extraordinary expense despite high costs

The Cologne Tax Court recognised the costs of 65.000 Euro for the installation of a lift as an extraordinary expense. Reason:

• A cheaper stairlift was technically not possible
• The lift was medically necessary

Cologne Tax Court ruling of 27.08.2014, Az. 14 K 2517/12

Tax deductible with medical indication

Medically indicated measures can be claimed as extraordinary expenses – even without a public health officer's report or prior certification.

Important:

• A medical justification (e.g. a doctor's certificate) is sufficient
• It does not have to be the "cheapest" or "simplest" solution
• A medically appropriate measure is sufficient

According to the BFH, the lift is considered a medical aid in the strict sense, serving exclusively disabled or ill individuals to alleviate their suffering:

BFH ruling of 06.02.2014, VI R 61/12

No distribution over several years possible

A common pitfall:
The high costs can only be deducted in the year of payment. If the tax impact in that year is low – e.g. due to low income – the tax benefit may partially or completely dissipate.

The tax authorities do not allow distribution of the costs over several years (R 33.4 paras. 4 and 5 EStR).

This regulation has been confirmed by the BFH:

BFH ruling of 12.07.2017, VI R 36/15

Tax advice: How to make the most of the measure

• Obtain written confirmation of the medical necessity of the lift.
• Check if you can bundle other deductible costs to make the tax deduction more effective.
• Consider postponing the payment to a year with higher income to achieve the full effect.