Can I claim ancillary costs such as caretakers or cleaning staff for tax purposes?
April 19, 2024 | 50,00 EUR | answered by Lorenzo Hartmann
Dear tax advisor,
I have a question regarding the tax deductibility of ancillary costs for rental and leasing. I have been renting out an apartment for some time now and would like to claim the costs for a caretaker and cleaning staff as tax deductible. So far, I have always borne these costs myself, as I believed they were not deductible.
The current situation is that I pay the ancillary costs for the caretaker and cleaning staff entirely out of my own pocket and have not yet seen a way to deduct them from my taxes. However, since the costs are not insignificant, I would be very pleased if I could deduct these expenses from my taxes.
My concern is that I may have overlooked something or not be correctly informed. I would like to ensure that I am maximizing all possibilities to minimize my tax burden and not have any expenses unnecessarily fall through the cracks.
Therefore, my question is: Can I claim the ancillary costs for a caretaker and cleaning staff as tax deductible? If so, what documents do I need to provide and how should I proceed to correctly report these costs in my tax return?
Thank you in advance for your help and support.
Best regards,
Ulrike Voigt
Dear Mrs. Voigt,
Thank you for your question regarding the tax deductibility of ancillary costs in rental and leasing agreements. I am pleased that you are considering how to minimize your tax burden and maximize all available opportunities.
In general, the costs for a caretaker as well as cleaning staff can be claimed as tax-deductible expenses within the scope of rental and leasing activities. These expenses are considered advertising costs incurred in connection with rental activities and are therefore eligible for tax deduction. It is important to note that these costs are to be considered as operating costs of the rented property and not as general household expenses.
In order to correctly report the ancillary costs for the caretaker and cleaning staff in your tax return, you should collect and keep relevant receipts and invoices. This includes invoices from the property management or the contracted cleaning companies, detailing the incurred costs. These documents serve as proof of the actual expenses incurred and can be presented in case of a tax audit.
In your tax return, you can then list the costs for the caretaker and cleaning staff under the category of "advertising costs" or "operating costs". It is advisable to list these expenses separately and not mix them with other costs to ensure clear traceability.
I hope this information is helpful and answers your question. If you have any further questions or need assistance with recording the ancillary costs in your tax return, please feel free to contact me.
Sincerely,
Lorenzo Hartmann
Tax Advisor
