What is deductible if I live with my partner in the second home?
It is not uncommon for spouses to work at the same secondary place of employment and live together in a second home during the week. They maintain their home at the main residence and return there regularly. Tax offices often assume that the centre of life is at the place of employment and refuse to recognise dual housekeeping.
However, the decisive factor is whether the main residence is still considered the centre of life or whether the second home has become the centre of life as a result of living together. Living together in the second home does not affect the recognition of dual housekeeping as long as the second home does not become the new centre of life.
The Federal Fiscal Court has recently ruled that for both spouses who are employed and live with their children in family accommodation at the place of employment, the centre of life interests is determined as part of an overall assessment of the individual circumstances based on certain criteria. Although there is a presumption that the centre of life interests is usually at the place of employment, the taxpayer can rebut this presumption (BFH ruling of 1.10.2019, VIII R 29/16).
For childless spouses who jointly maintain family accommodation at the place of employment, it is "usually" assumed that the centre of life is at the place of employment (standard presumption). This applies even more so if the spouses live with their children in family accommodation at the place of employment, even if the former family home is retained and still used occasionally. However, in this case, the "overall assessment of all individual circumstances" must also be taken into account.
In the "overall assessment of all individual circumstances", it is important to consider how often and for how long the taxpayer stays in each home, how both homes are equipped and their size. The duration of the stay at the place of employment, the distance between the two homes, and the number of trips home are also important. Significant weight is also given to the location to which closer personal ties, such as the nature and intensity of social contacts, club memberships, and other activities, exist.
It cannot simply be assumed that spouses who both live with their school-age children in family accommodation at the place of employment "necessarily" have their centre of life at the place of employment. Rather, an overall assessment of the individual circumstances is always required. Although there is a standard presumption for the overall assessment that the centre of life is at the place of employment, the taxpayer can present individual circumstances that indicate a centre of life for both working spouses at the home location.
If both spouses/partners are employed at the secondary place of employment and live together in the second home, each has a dual household for tax purposes. Each can deduct half of the accommodation costs - and since 2014, each up to a maximum of 1.000 Euro per month. Each can also claim the full meal allowances for the first three months.
