Deduction of costs for marten protection grids as maintenance costs not permissible

Facts

In 2013, the married couple A.C. and B.C. had equipped their property in U./ZH with a marten protection grid and claimed the resulting costs of CHF 11,769.-- as maintenance costs in their 2013 state and federal direct tax returns. The Administrative Court of the Canton of Zurich had recognized this deduction, in contrast to the lower cantonal instances. The Cantonal Tax Office of Zurich subsequently filed an appeal with the Federal Supreme Court.

Considerations

The Federal Supreme Court concluded that the expenses for the marten protection grid do not constitute deductible maintenance costs, but rather value-enhancing investments. The measure did not serve to restore a previously higher property value, but to prevent potential future damage that had not yet occurred. This created an added value of the property that cannot be qualified as maintenance.

The Federal Supreme Court pointed out that expenses to prevent future damage are generally to be classified as value-enhancing, even if they serve to preserve the substance. An exception applies only to energy-saving and environmental protection measures, which the legislator has assigned to the area of value…