The tax tip: help after the flood

The severe storms in mid-July caused considerable damage from floods in parts of the country.

In order to mitigate the financial consequences somewhat, the federal and state governments have also introduced the first tax measures.

Taxpayers who are directly and economically affected by the storm can apply for interest-free tax deferrals until October 31, 2021.

There are no overly strict requirements for proof.

The deferral applies until the end of January 2022.

Expenses for the replacement of household items and clothing as well as for the repair of damage to the home can be deducted as an extraordinary burden, but unfortunately only if the reasonable burden has been exceeded. The amount is based on income, marital status and number of children. Important: Even before submitting the 2021 tax return, affected employees can have their expenses entered at the tax office as an exemption for the monthly wage tax deduction.

For donations made by October 31, 2021, an account statement or a PC printout is sufficient as proof of donation regardless of the amount in the case of online banking. This also applies if the person giving the donation does not live in an affected federal state. If the employee waives the payment of part of the wages in favor of a payment directly to an employee concerned or to a donation account, this wage donation is not a taxable wage. If the employer temporarily grants the employees and their families, whose apartments and houses have become uninhabitable due to the storm, accommodation and food, this also does not count towards wages. There are also facilitations for donation campaigns by non-profit bodies for people damaged by the flood.

For tradespeople and freelancers, under certain conditions, in addition to the use of special depreciation, in particular the simplified assertion of expenses for "the restoration of damaged company buildings and movable assets as maintenance expenses" as well as expenses for the "removal of flood damage to the property" as immediately deductible operating expenses.