Current decisions
Waste collection costs and other tax deductions: What applies?
Waste collection costs are currently not tax-deductible. This is based on a ruling by the Cologne Finance Court on 26.01.2011 (Ref: 4 K 1483/10). The reason: The actual service, i.e. waste disposal, takes place outside your own property. Therefore, it is not considered a "household-related service" under income tax law.
Why are waste collection costs not deductible?
Waste collection is considered a supporting activity for tax purposes. Although the collection takes place at the property, the actual service – the disposal and processing of the waste – occurs outside. Therefore, the necessary spatial connection to the household is missing.
The Münster Finance Court confirmed this legal view in a ruling on 24.02.2022 (Ref: 6 K 1946/21 E). Although an appeal was not allowed for formal reasons, the question remains open in the long term.
Craftsmen's services also deductible for rent-free accommodation
The Federal Fiscal Court (BFH) clarified in a ruling on 20.04.2023 (Ref: VI R 23/21) that craftsmen's services can also be tax-deductible if a flat is provided rent-free – for example, to a son. The condition is that the taxpayer runs the household themselves and pays the craftsmen's costs.
Emergency call systems: When are the costs tax-deductible?
Costs for an emergency call system can only be considered for tax purposes if they are incurred as part of "assisted living". In such cases, 20% of the expenses can be deducted directly from the tax. In contrast, expenses for emergency call systems in private households are not eligible, as decided by the BFH.
Tax benefits for tenants under § 35a EStG
Tenants can also claim tax reductions for household-related services and craftsmen's services. Important: The landlord must issue the cost certificate. A corresponding template is included in the BMF letter dated 09.11.2016.
Costs for a structural engineer: No tax deduction possible
The Federal Fiscal Court has ruled that costs for structural calculations by a structural engineer do not fall under the tax reduction according to § 35a EStG – even if they are required for a craftsman's service (BFH ruling of 04.11.2021, Ref: VI R 29/19).
Maintenance reserve: Mere payment is not enough for advertising cost deduction
Flat owners regularly pay contributions to the so-called maintenance reserve (formerly: maintenance reserve), as regulated in § 19 para. 2 no. 4 WEG. This reserve belongs to the owners' association – not the individual owner – as the association is considered legally capable (§ 9a WEG since 01.07.2007).
For tax purposes: A deduction as advertising costs is only possible when the administrator has actually used the funds for maintenance measures – and only if the flat is used to generate income.
If the reserves are used for measures that lead to production costs (e.g. extensions or major renovations), these are not immediately deductible. In this case, only depreciation for wear and tear (AfA) can be claimed for tax purposes.
This view was also supported by the Frankfurt am Main Regional Finance Office (directive of 09.11.2022, S 2211 A - 12 - St 214) and has now been confirmed by the Federal Fiscal Court (BFH ruling of 14.01.2025, Ref: IX R 19/24).
