Save 1.200 euros: Take advantage of the tradesman bonus!

When tradespeople renovate a home, customers can save up to €1.200 in tax – if payment is made before the end of the year. If in doubt, tradespeople should issue partial invoices, advises one expert.

This article is part of the special topic Tax bonus for tradesmen's invoices: What you should know

If customers have their home repaired by tradesmen before the end of the year, up to 1.200 euros tax savings possible. "However, the wage costs must still actually be invoice posed and also settled ", explains Jana Bauer, deputy managing director of the Federal Association of Wage Tax Assistance Associations 

How do I make the most of the craftsman bonus?

To get the tax bonus to make optimal use of, taxpayers must know the rules. The tax reduction is granted if the customer has ordered a craft service, a proper on account is present and the Cashless payment Works such as Repairs, renovations or modernizations in the household – be it in the apartment, in the self-used Holiday home or in the garden. The installation of a tax-free Photovoltaic system on the balcony or roof of the house falls under this, provided no Öffentlichen Funding were used (see BMF letter dated 17 July 2023, Ref. IV C 6 - S 2121/23/10001:001).

Jana Bauer recommends: "First of all, everyone should check how much has already been spent on work by tradesmen this year was spent." Per household, wage, travel and machine costs of a total of 6.000 euros per year The tax office takes this into account 20 percent, Also maximum 1.200 eurosIf this maximum amount has not yet been exhausted, you have the opportunity to use it until the end of the year.

How do you distribute costs strategically?

"Did the craftsmen Not all work until New Year's Eve it is advisable to keep the services provided up to the turn of the year to invoice partial services and to pay them off in the old year. Important is also with a Partial invoice, that the Labor cost share separately "It is clearly marked or evident," advises Bauer. For tradesmen's services that are new year, the maximum amount applies again – even if it is dieselb to construction project.

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Avoid prepayments!

Became At- or prepayments before the turn of the year, although the craftsman only arrived in next year continue to work on it, the prerequisites for the Tax reduction not In this case, there is no Tax advantage! This was decided by the Düsseldorf Finance Court (judgment of July 18, 2024, Ref. 14 K 1966/23 E) and finally the Federal Finance Court with its ruling of August 13, 2024 (Ref. IX R 31/23) approved.

The advisors at the Chambers of Crafts will be happy to help you with any legal questions!

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