Home Investing Dropping off your home office: this is how it works

Dropping off your home office: this is how it works

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Home office definition: what is a study?

The Duden defines the home office as an “office equipped with modern communication technology in one’s own home”. Wikipedia prefers the term Teleworking.

Basically, the home office principle can be paraphrased quite simply as follows: The employee does his or her work – armed with a computer, telephone and other digital aids – in their own four walls. It does not matter whether it is a Employees, self-employed or civil servants acts.

The home office offers cost advantages and time savings, is suitable in almost all professions in which physical presence is not absolutely necessary.

Simple example: For a retail saleswoman, working from home is out of the question for understandable reasons, whereas a novelist can create and write wonderfully at home.

Dropping off your home office: questions

From a financial point of view, homeworkers now have the following questions:

  • How can i mine Home office tax deductible?
  • What parts of the apartment can i withdraw?
  • What additional costs are deductible?
  • Can I also do the home office at part-time activity drop?
  • Is a Input tax deduction possible?

Dropping home office: requirements

The Federal Fiscal Court in Munich has made a decision: That domestic study is according to the judgment published on January 27, 2016, only under strict conditions tax deductible.

Employees can do that Home office only applies do if it is used “exclusively or almost exclusively to generate income”. Will the study, however used both professionally and privatelythe tax office says no. Central features of a home study are a desk, chair and bookshelf. But now there is also one Sofa bed for guests or a television in the room, the formal classification as a study is no longer given.

“A room that is furnished like an office, but which, in addition to performing (office) work, also serves other purposes to a significant extent, such as Play, guest or ironing room, is already not a study according to the general understanding of the word, “said the Grand Senate of the Federal Fiscal Court in its judgment.

Not tax deductible: work corner

This is especially true for rooms that are by nature not a study, for example Work corners or walk-through rooms. They are NOT tax deductible. The justification of the judges: “In the interest of constitutionally required tax equality, the aim must be to tax taxpayers at the same level with the same performance.”

And further: “If a taxpayer uses a room located within his home both for generating income and for private purposes, an effective control of the actual use of this room is significantly restricted or even impossible because of the close connection to the sphere of private life and the protection provided by Art. 13 GG. “

So the strict interpretation is supposed to Prevent abuse and cheating. After all, precise control of who uses his office to what extent is ultimately impossible.

Home office: who can sell it?

But: All those who have theirs professional focus completely at home can do that domestic study continue to assert. These include, for example …

You can pay for the Home office deduct in full. Incidentally, this also applies to retirees and pensioners who continue to work in retirement. Two years ago the Federal Fiscal Court decided in favor of a retired engineer who worked as an independent appraiser even after he retired. The tax office had to fully recognize his expenses.

Home office: what can I deduct?

You can fully discontinue the Equipment, renovation and also a possible subsequent construction Of your study. You add these costs completely to the Advertising expenses and add the corresponding invoices, for craftsmen or new furniture, for example, as receipts.

Rent and utilities such as electricity, heating and garbage disposal, on the other hand, you have to charge proportionally. Of all rental, heating and other costs that arise for the entire apartment, you can use the proportionately calculated amount as income-related expenses for the study in the Investments enter.

These costs are deductible:

  • Furnishing
  • renovation
  • Subsequent establishment
  • Rent and utilities (proportionally)
  • Household insurance (proportionally)

Even Pictures, art, ceiling lights, curtains or carpets are deductible. This does not apply to televisions, refrigerators or guest beds, otherwise they will also Recognition as a study would no longer exist.

The Calculate the deductible portion Now you do this: Divide the area of ​​the study by the total area of ​​the apartment and multiply by 100.

example: Your apartment is 75 square meters, the study is 20 square meters. 20 divided by 75 times 100 is 26.6. That is the deductible portion of your study; You deduct 26.6 percent of rental and ancillary costs from tax.

Dismissing the home office: not a professional focus

However, if you only do a manageable part of your work at home, that is domestic study So not the focus of your work, then again other provisions apply. This applies to employees who only move their office home temporarily, for example, once a week, in consultation with their employer, take a home office day. Or typically representatives of these professions:

In that case, you can up to 1,250 euros discontinue annually. Mind you, the amount is not a flat rate, but the upper limit. You can then only claim the actual costs incurred for the study – up to the upper limit of 1,250 euros.

Pool workstation: deductible

A Pool workplace is a single workstation in the office that is shared by several employees. This could be, for example, three representatives who are always on the move and take a rotating seat in the company – depending on their presence – on the same swivel chair.

The Federal Fiscal Court has decided that in this case study room costs of up to 1,250 euros per year deductible as business expenses are. However, provided that the employee has a Must perform part of his work in the home office, because use at the pool workstation is restricted for him.

Home office: your own home

Is the study in a property used by the owner, there are further depreciation options. So can he owner assert pro rata:

  • Repair and modernization of the house or apartment
  • Property tax
  • building insurance
  • Caretaker
  • Building depreciation
  • Debt interest on purchase and renovation loans
  • cleaning
  • Legal protection insurance
  • Contributions to the house and landowners association

And another current, very specific ruling by the European Court of Justice: Take advantage of Self-employed a tax-recognized, domestic study In a property that he and his wife owns, he can pay for the costs incurred through this office in the amount of his share Deduct input tax.

Outside office: also deductible?

Another scenario: You use a study that not part of your home is, for example in an apartment building. Example: Your study is between your own living area and the living area of ​​a subtenant, so that strangers can also use the area in between.

In this case it is no longer a domestic one, but a outside office. The cost of the home office is unlimited as business expenses or business expenses deductible.

Home office: where to specify in the tax return?

A rough guide for your tax return:

  • Workers put the home office under Advertising expenses in Appendix N.
  • Self-employed put the home office under Business expenses away.
  • Setup expenses put under Depreciation of low value assets away.

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