Service owners who use their home themselves can achieve significant tax savings by careful planning and documentation of their expenses. Although the state home allowance has no longer been available since 2005, there are still various ways to assert costs for tax purposes.
Craftsman costs in tax return
One of the most famous options for saving taxes are craftsman services. This includes a variety of work, such as:
• Repairs and maintenance work on the roof and facade
• Maintenance and modernization of the heating system
• Exchange and repair of windows and doors
• Modernization of the kitchen and bathroom
The Treasury recognizes 20 percent of the work, travel and machine costs up to a maximum amount of 1,200 euros per year. It is important that the work is carried out in your own household. Invoices must be paid by transfer because cash payments are not recognized.
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Specify household -related services in tax
Household services can also be asserted for tax purposes. This includes activities such as:
• Cleaning the household
• Garden care, including mowing lawns and hedge cuts
• Childcare
• Snow space in winter
Here the tax office also recognizes 20 percent of the costs, but a maximum of 4,000 euros per year. For minor employees, the maximum limit is 510 euros per year. Here, too, it is important to pay the invoices by bank transfer.
Energetic building renovation brings tax savings
For energetic renovations, there have been additional tax relief since the 2020 climate protection program. Measures such as:
• thermal insulation of walls, roof surfaces and floor ceilings
• Exchange of windows and outer doors
• Installation of ventilation systems
• Renewal of the heating system
The prerequisite is that the building is older than ten years. 20 percent of the renovation costs can be deducted over a period of three years, but a maximum of 40,000 euros. In the first and second year, seven percent and six percent of the costs can be claimed in the third year.
Modernization of listed real estate
Modernizations of listed real estate offer special tax advantages. Here owners can sell 90 percent of the renovation costs linearly over a period of ten years. It is important that the measures serve to maintain the monument and are necessary for its use.
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Disconnect the study from the tax
If owners have a study in their own property, certain costs can also be deducted, provided that it is the center of their professional activity or there is no other job. A maximum of 1,250 euros per year can be deducted. The deductible costs include:
• Equipment of the room (e.g. lamps, carpets)
• Cleaning costs, provided that these are not carried out by household members
• proportionate costs for electricity, heating and water
Do not forget real estate transfer tax in tax return
The real estate transfer tax can be reduced in certain cases. For example, when selling within the family or when taking over movable goods that are listed separately in the purchase contract, such as fitted kitchens or garden tools.
Editor finance.net
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