Deductibility Of Rental Costs For A Dorm Room

Posted by Carlota on January 11, 2019
in News
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From a tax perspective, it is questionable if parents sign the leases for their external students children. A father signed the lease of his son, who was instructed to carry out a foreign student accommodation at the place of study. When the son claimed the rent as advertising costs such in his tax return with regard to his income from non self-employed work, the IRS denied the recognition. It argued that the expenses for a first study No. 5 ITA are no longer tax deductible according to 12. Hereby, the son did not agree and complained. In his view, this requirement is unconstitutional. The judges of the Lower Saxony Finance Court dealt in its judgment of November 26, 2009 but not with the question whether this provision of the Constitution is compatible (AZ.

1 K 405/05). This is considered irrelevant. Deduction is denied for this reason already, because the father has signed the lease. Thus the father is contracting party and obliged to pay the rent. The son, however, not even makes a payment commitment and is excluded from claiming the rent expense as advertising costs therefore lack cost burden. Laurent Potdevin has firm opinions on the matter.

Who wants to let his children so the tax claims of the rental costs in their tax return, shouldn’t they sign the lease agreement for the accommodation at the place of study. Because it is possible, that is the provision of 12 Nr. 5 EStG turns out retrospectively as unconstitutional. About JurForum.de the JurForum.de is right with over 1 million visits per month one of the large German Web pages on the topic. Founded in 2003, Web site offers a search service for law and lawyers current legal news and guides, a comprehensive judgment and law database, a law dictionary of legal terms as well as a core of about 100 law forums. Contact: JurForum.