Which damage to home and household items can I claim as exceptional expenses?
Damage to household items or clothing is generally deductible if caused by an unavoidable event (e.g. fire, theft, storm, or flood).
Conditions
- Actual financial expenses must have been incurred.
- Insurance payments and public aid must be deducted.
- The residual value of damaged items must be considered (the current value is decisive).
- Re-purchase or repair must take place.
- Only essential items are deductible (e.g. kitchen, bedroom).
- Damage in cellars or attics is generally not deductible.
- Luxury items such as artworks or expensive furniture are excluded – exceptions for everyday necessities (e.g. family car).
Restrictions
Without appropriate insurance (e.g. household insurance), the tax office usually does not recognise damage. Reasonable protective measures must be taken by yourself. Insurance against natural damage (e.g. flooding) is not considered standard insurance.
Tax consideration
- Only the actual expenses are deductible.
- The reasonable personal liability is deducted from this.
- The personal liability is 1–7% of income – depending on income, marital status, and number of children.
Special case: 2021 flood disaster
In the case of exceptional natural disasters such as the 2021 flood in Rhineland-Palatinate, North Rhine-Westphalia, Bavaria, and Saxony, tax relief applies. These are regulated in the so-called disaster decree and apply to those affected and supporters.
