Only one principal residence for fiscally separated partners living apart

A man and his wife live permanently separated and jointly own two homes. The man declares the home he lives in on his tax return and deducts the interest paid in full. The woman does the same for the home she lives in.

The inspector believes that the man and woman should be considered fiscal partners, despite their permanent separation. Permanently separated spouses can have two principal residences for two years. After that, they must choose which home is designated as the principal residence.

If the partners do not make a joint choice, the order of the submitted tax returns determines which home is considered the principal residence. The tax return that is submitted first to the Tax Authorities is decisive. Since the man's tax return was submitted earlier than his wife's, his home was designated as the principal residence.

As a result, half of the income and deductions related to this home must be attributed to the man, as both spouses are 50% owners of the home. The Zeeland-West-Brabant District Court confirms the inspector's position in the appeal filed by the man.