When we bought a house 2 years ago, we took over the washing machine / dryer that were left by the old owners. We never liked the washing machine (Siemens) , and it finally broke last week. We’ve ordered a Miele.
Question: Can we deduct this expense off our tax? I realise this is not a “fixed” CAPEX cost.
Yes, it is a repair/maintenance. However, you typically have some ‘pauschal’ deduction for maintenance so it only makes sense to itemize deductions if those exceed the pauschal amount.
So if one replaces an old, lesser quality, dryer with a new more expensive one, can one deduct the full cost of the new dryer, or only the replacement value of the old one?
I only ask out of curiousity. I’ve replaced several washers and dryers over the years, but never tried deducting the cost. Even the year I bought an professional quality washer it still turned out that I was better off taking the allowance rather than itemizing.
Thanks, but as we installed solar this year, we need to go above the pauschal.
And is it true, that major CAPEX investments (new heat pump, solar, etc) can be also be deducted from any capital gains tax in the event the property is sold? That is what I have heard.
capital gains = net proceeds - cost base
the capex forms part of the cost base
but there seems to be a contradiction in your answer. is the solar installation going to be treated as non-deductible CAPEX or is it tax deductible in year (due to some green incentive)?
if you deduct it as revenue expense, you can’t deduct it again as capex expense on sale.
Full cost.
Is it possible only for home owners or also for rentals?
For the owner of the property (whether own use or rented out).
OK good to know, not my situation yet unfortunately =)
Interesting post!
Question- I’m a home owner and bought Natuzzi (expensive) furnitures.. can I deduct these costs from my tax?
Thanks
No, because these are not CAPEX items that would remain with the house when you sell.
For example, a built in oven or cooktop is deductible. A coffee machine or toaster is not.