Austria MOF Clarifies Deductibility of Care Costs as Extraordinary Expenses Following Asset Transfer

The Austrian Federal Ministry of Finance Sept. 25 posted online Federal Finance Court Decision No. RV/3100417/2022, clarifying the deductibility of care costs as extraordinary expenses following an asset transfer. The taxpayer, an individual, claimed the costs of 24-hour care for his father as extraordinary expenses after receiving the transfer of a family farm. The Tax Office denied the deduction. On appeal, the Federal Finance Court found that: 1) the obligation to provide care arose from the transfer agreement, however the agreement didn’t expressly require the taxpayer to bear the costs of a 24-hour caregiver; 2) the costs incurred didn’t exceed ...