Tax deductions for public transport and bicycles - What's possible?

Every morning you set off for work. For this, you ride your bicycle to the train station and take the train to your destination. How much can you deduct for your commute from your taxes?

The Federal Court also dealt with the above question after a taxpayer claimed both his subscription for the Zurich Transport Network and a lump sum deduction of 700 francs for the bicycle in his tax return. The local tax office denied this double deductibility on the grounds that the reductions made were only alternatively, not cumulatively permissible. The taxpayer concerned filed a complaint and the judgment was taken up to the Federal Court.

Read here the full judgment.

The basis for the deduction of professional expenses is Art. 26 DBG. This limits the permissible deduction for journeys between home and work to 3000 francs. Based on this article, the Professional Costs Ordinance was also issued, which allows a lump sum deduction for bicycles of 700 francs (Art. 5 BKV).

Freedom in designing the commute

In its judgment, the Federal Court stated that Art. 5 BKV does not exclude the cumulative deductibility of costs for private vehicles and public transport. The BKV merely establishes a preference for public transport by allowing private vehicles to be deducted only subsidiarily. If a person could cover their commute by public transport but chooses a private vehicle instead (e.g., a more expensive car), only the costs for public transport are deductible. In addition, the Federal Court stated that it is not the task of the tax authorities to prescribe the taxpayers how to design their commute. Such a restriction would require a corresponding legal basis. The increasingly longer commutes would also make it necessary to use several modes of transport.

Bike, bus, and walking are equally valid

The question of whether the lump sum deduction for the bicycle is permissible if the way to the station could have been covered just as well by bus or on foot was also open. In this respect, too, the Federal Court sided with the taxpayer and affirmed the deductibility. It further stated that the BKV does not set a ranking for bike, bus, and walking. These three alternatives are consequently to be regarded as equivalent and thus interchangeable. The Federal Court also expressed understanding that a taxpayer would prefer cycling over walking to save time. Furthermore, such behavior is to be considered economical and ecological, as the use of the bicycle by the taxable person contributes to the fact that public transport does not need to be further expanded.

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