Facts
A and B [X.] are the owners of the property [Y.] land registry no. 660 with an area of over 20 ares. Between 2001 and 2003, they had the main building demolished down to the north-facing wall as well as partially the east and west flanks up to the height of the entrance portal, and had a so-called Minergie house constructed. For these construction works, they claimed a total of over 660,000 Swiss francs as real estate maintenance costs.
However, the tax authorities did not recognize these costs as deductible, as they were construction costs for a new building and not maintenance costs. The Tax Court of the Canton of Solothurn dismissed an appeal and a complaint by the appellants against this decision.
Thereupon, A and B [X.] filed a public law appeal with the Federal Supreme Court.
Considerations
The Federal Supreme Court states that while maintenance costs, insurance premiums and administrative costs can be deducted from taxable income for properties in private assets, expenditures for the acquisition, construction or appreciation of assets cannot.
Energy-saving and environmental protection measures are equated with maintenance costs, but only insofar as they relate to existing buildings. In the case of new buildings or measures that are practically…