(2023)
What is deductible if care needs arise after moving into a care home?
If you or your spouse initially move into a "normal" retirement home due to age and later become in need of care, the following regulation applies: In this case, the Federal Fiscal Court had ruled that the home costs (for meals and accommodation) cannot be deducted for tax purposes, but only the care costs would be recognised as extraordinary expenses in accordance with § 33 EStG (BFH ruling of 18.4.2002, BStBl. 2003 II p. 70).
However, exceptionally, the tax authorities are more generous than the BFH judges: From the point at which the need for care is determined, the tax office recognises all home costs (meals, accommodation, and care costs) as extraordinary expenses under § 33 EStG.
A reasonable burden is deducted. There should be no tax difference whether the move into a retirement home is due to illness or care needs, or if the illness or care needs that make accommodation necessary only occur later (BMF letter of 20.1.2003, BStBl. 2003 I p. 89).
