Actual maintenance costs

Each year, an owner will choose between applying the standard deduction or the actual maintenance costs.

In the event the actual costs exceed the standard deduction, the former should be deducted from the taxable income. It is important not to confuse maintenance costs with added value. While maintenance costs are deductible from your taxable income for the year they are done, the added value (for exemple, adding a pool), will only be deductible from the taxable profit you will make when selling your property (if you make a profit, of course).

A few exemples of the differences between maintenance work and added value :

• Renovation of your kitchen for an amount of CHF 20k as the old one was 20 years old = maintenance costs (fully deductible from your taxable income for the year the renovation was done)
• Changing your old flooring into a new one = maintenance costs
• Set-up of a pool in your garden = added value (only deductible from the taxable profit you will make from selling your property)
• Extend your property of 20 m2 = added value

Depending on the renovation work you plan to do and your taxable income, a well thought and thourough strategy will allow you to save thousands of CHF.