How is owner-occupied property subsidised under Section 10f of the Income Tax Act?

Under § 10f EStG, expenses for urban development measures pursuant to § 177 of the Building Code are eligible if they are incurred for buildings in a formally designated redevelopment or development area. The same applies to measures that serve the preservation, renewal, and functional use of a building that is to be preserved due to its historical, artistic, or urban significance, and for which the owner has committed to certain modernisation measures with the municipality. Proof must be provided by a certificate from the relevant municipal authority that you have carried out building measures in the aforementioned sense and have borne the costs yourself.

Similarly, expenses for building measures on listed buildings can be deducted as special expenses in the aforementioned manner if the conditions are proven by an official certificate. You can claim the tax benefit under § 10f EStG after the completion of the building measure.

If the property is co-owned (except for spouses/partners), enter your share of the deduction amount here.

You can only claim the deduction amounts under § 10f EStG for one building. Spouses/partners who do not live permanently separated in Germany can claim the benefit for a total of two buildings. You cannot claim the deduction amount if increased depreciation under §§ 82g, 82i of the Income Tax Implementation Regulation has been taken into account for building measures completed after 31.12.1986 on a self-occupied building as special expenses (object restriction).

(2022): How is owner-occupied property subsidised under Section 10f of the Income Tax Act?