Overview of the tax law decisions of the Zurich Tax Appeal Court published in September/October 2020.
- StRG ZH, 12 May 2020, DB.2020.15 / ST.2020.21: Property maintenance costs (this decision is legally binding); The first-time preparation of architectural basic plans for an old dilapidated and (for about two decades) no longer habitable residential building does not serve to maintain its value. The relevant costs qualify as investment costs. Such basic plans must be distinguished from construction plans for a concrete building project. Attempts by obligated parties to associate the plan (in the sense of preparatory work) with a concrete renovation project, and in particular with energy-saving measures, do not help them to achieve the desired tax deduction. It was left open whether the basic plans should be seen as preparatory work for construction plans of the concrete construction project. On the one hand, the concrete connection has not been proven and, on the other hand, the refurbishment in the specific case would be economically equivalent to a new building, which is why preparatory work - even that relating to energy-saving measures - is not eligible for deduction (rejection).
All decisions of the Tax Appeal Court of Zurich can be accessed here.
