It is becoming more widespread for EU taxpayers to live in one country and to pursue employment in another country. This leads to numerous problems that have been partly resolved by means of ECJ jurisdiction. One question that still remains open is whether deductions can be made for an owner-occupied dwelling according to Section 18 para. 1 item 3 Income Tax Act (extraordinary expenses). According to the wording of the law, such expenses may only be deducted if the dwelling is situated in the taxpayer’s home country. The dominant school of thought takes a critical stance on this view. Now the Federal Ministry of Finance has examined this subject and clearly sympathizes with the dominant school of thought. In this article, Alfred Holzapfel studies the published legal opinion of the Federal Ministry of Finance.