Craftsmen: No household-related services

Using the tax bonus for craftsmen's services and deducting the staircase renovation as a "household" activity is not possible.

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

The Federal Finance Court has clarified this. Craftsmen’s work is not a household-related serviceA homeowning couple had already exhausted their tax bonus for tradesmen's services and now wanted to additionally exploit the sales opportunity for "household-related" services. The couple had made this calculation without consulting the Federal Fiscal Court. Expenses for "household-related" services include cooking, laundry, cleaning, childcare, or gardening. They can be deducted annually up to 20 percent of a maximum of €20.000—that is, up to 4.000 euros per year - reduce your tax liability (Section 35a paragraph 2 sentence 1 EStG). 

"Crafts activities" carried out in private homes can be deducted from the tax payable up to 1.200 euros per year (20 percent of a maximum of 6.000 euros). If a homeowner has painting and wallpapering work carried out in the hallway and stairwell by tradesmen, then these are no "household" activities, the Federal Fiscal Court states clearly. The maximum amount of 1.200 euros applies here.

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The taxpayer couple in question had already exhausted the maximum allowance for handyman work through renovations and now wanted the renovation of the hallway and stairwell classified as "home improvement." After all, the couple argued that no special craftsmanship skills were required. In their opinion, the work could have been carried out by the homeowners themselves. 

The Judges at the Federal Finance Court saw it differently and denied the couple the right to divide the property. Painting and wallpapering are considered craft activities, for which the tax relief for craftsmen's services applies under Section 35a Paragraph 2 Sentence 2 of the Income Tax Act.

Judgment of the Federal Fiscal Court, Ref. No.: VI R 4/09