Dismissal of the Appeal against the Decision of the Administrative Court of the Canton of Thurgau regarding State and Municipal Taxes as well as Direct Federal Tax

Facts

A. and B. declared maintenance costs for their property in U. (Municipality of V., Canton of Thurgau) in the amount of CHF 292,371.-- in their 2014 tax return. The Tax Administration of the Canton of Thurgau only allowed CHF 20,136.-- as ordinary maintenance to be deducted. Upon objection, the Cantonal Tax Administration reduced the deductible maintenance costs to CHF 68,778.--.

A. and B. filed an appeal and a complaint against the objection decision. The Tax Appeal Commission dismissed the appeal and the complaint and reduced the deductible property maintenance costs to CHF 20,136.--. The Administrative Court of the Canton of Thurgau dismissed the complaint filed against this decision.

Considerations

The Federal Supreme Court considered that the reconstruction of the swimming pool and the redesign of the garden are to be classified as construction costs for tax purposes and not as deductible maintenance costs. The comprehensive renovation of the swimming pool and the garden is economically equivalent to a new construction, which is why the associated expenses are to be treated as a whole as construction costs.

Expenses that serve to preserve…