Current loan installments increase
Current loan installments increase the deductible for those working to pay their parents’ care costs. The rates for a loan can be completely deducted from the relevant income. The prerequisite is that the loan was taken out before the payment obligation was established.
Principle obliged to pay for the care cost
Children are in principle obliged to pay for the care costs of their parents if their income and assets are insufficient and if full coverage of the costs by means of insurance is not guaranteed. If the money is insufficient in the case of long-term care, the social welfare office initially assumes the costs incurred. However, this brings it back from the children of the nursing staff. However, there is a deductible in the amount of 1500 dollars for single people, which can be reduced by various deductions.
Rates for a consumer credit
In addition to the rates for a consumer credit, the debt service may also be deducted from income as part of real estate financing. If the property itself is used, the social welfare office will allocate the saved rent to the income. In general, however, the current installments of a real estate loan are higher than the basic rent of a comparable property, so that owners are better off.
If a property is rented,
The revenue will be charged against the expenses. The difference is added to or deducted from income. A self-used property must not be used for the care costs of the parents and not be mortgaged. For other assets, such as a rented property, this may be the case. However, this only applies if the respective asset value does not have to be regarded as an indispensable component of private old-age provision because, for example, there is no other asset.
It is not legally possible to conclude how special payments are made in the case of a self-used property. If the credit installments are deducted from the income, children can use a special payment to transfer all or part of the care costs for their dependent parents to the Social Welfare Office in the year in question. It is unclear how optional extra payments are also fully recognized as a deduction. Details about this will presumably arise in the course of time through the case law.