German Federal Fiscal Court rules on first place of work and dual household expenses

The German Federal Fiscal Court (Bundesfinanzhof) has issued rulings clarifying tax deductions for travel and dual household management.

In one decision, the court ruled that a parked aircraft at a station airport can constitute a pilot's first place of work. This distinction is critical for determining whether a taxpayer can claim actual travel costs under business trip principles or is limited to the standard distance allowance (Entfernungspauschale). The court noted that a first place of work must be a fixed business facility where a significant portion of contractual duties is performed, such as organizing and monitoring refueling from the cockpit while parked.

In a separate matter regarding self-employed individuals, the court addressed the tax treatment of dual households. Self-employed workers may deduct costs for a second home at a job site, including up to 1,000 euros per month for accommodation and costs for household goods. However, the court clarified that for weekly trips home to a primary residence, only the standard distance allowance may be claimed as a business expense, rather than actual travel costs.