The Tax Court (Finanzgericht, FG) of Baden-Württemberg has ruled that residents of senior living facilities may claim the proportionate labour costs for preparing and serving meals as so-called household-related services for tax purposes, even if the meals are not served in the resident's own apartment but in a dining hall available solely as a communal facility. In the case at hand, the meals were prepared in the in-house kitchen, to which the claimant had no access. According to the FG (judgement of 12 September 2012, Az. 3 K 3887/11), these services were considered to be rendered "within the household" of the taxpayer.
Frequently asked questions
Frequently asked questions
Are the costs of meals in a residential care home deductible as household-related services?
Yes. The Finanzgericht Baden-Württemberg ruled on 12 September 2012 (Az. 3 K 3887/11) that residents of a care home may claim the proportionate labour costs for preparing and serving meals as household-related services under § 35a EStG. A prerequisite is that the care home's invoice itemises these costs accordingly.
Must the meal be served in one's own apartment to qualify for the tax benefit?
No. According to the view of the Fiscal Court of Baden-Württemberg, the tax benefit may also apply if the meal is served in a communal dining hall. The decisive factor is that the service is provided within the spatial area of the taxpayer's household — this also includes communal facilities of the residential home.
Does it matter whether the resident has access to the kitchen?
No. In the decided case, the claimant had no access to the in-house kitchen in which the meals were prepared. The tax court nevertheless considered the service to be rendered "within the household" of the taxpayer and granted the tax reduction.
Which catering-related services in a retirement home specifically qualify for the tax credit?
The proportionate labor costs for preparing meals in the on-site kitchen and for serving them in the dining hall qualify for the tax credit. Material costs and the cost of the food itself are not deductible; the breakdown must be clearly shown on the retirement home's invoice.