Planned refurbishments do not justify every provision

Provisions for future major renovations are rarely permitted for tax purposes. In principle, they are only recognised if a building has been inadequately maintained to date and deductible maintenance costs are expected to be incurred in the future.

In the present case, however, the property had been well maintained. The planned refurbishment would have predominantly increased the value of the property and should therefore have been capitalised. Furthermore, the project was not yet sufficiently concrete, as permits were lacking and its implementation was still uncertain. (Source: BGE 9C_185/2026 of 20 May 2026)