How can I deduct my home office expenses for tax purposes?
July 19, 2022 | 40,00 EUR | answered by Georg Nitsche
Dear tax advisor,
I have a question regarding the tax deductibility of my home office expenses. For some time now, I have been working both in my home office and occasionally in my office on site. I mainly use my home office for carrying out my professional activities, as I can work undisturbed there and have all the necessary tools at my disposal.
Currently, I am performing my professional activities both from home and in the office on site, as my employer allows for a hybrid work model. However, since I do not have a dedicated office space in the company and have set up my home office instead, I am interested in the tax aspects regarding the deductibility of my home office expenses.
My concern is that I am not exactly sure which expenses I can deduct for my home office and how I should correctly report them in my tax return. I want to make sure that I do not miss out on any tax benefits and can optimize the deduction of my home office expenses to reduce my financial burden.
Could you please explain to me which expenses I can deduct for my home office and how to correctly report them in my tax return? Are there specific requirements that I need to meet in order to claim the deduction of my home office expenses? What documents should I provide for the tax deduction of my home office expenses? I would greatly appreciate it if you could provide me with detailed information and guidance on this matter.
Thank you in advance for your assistance.
Best regards,
Sophia Falk
Dear Mrs. Falk,
Thank you for your inquiry regarding the tax deductibility of your home office expenses. I am pleased that you are thinking about how to reduce your financial burden by optimizing your home office expenses. I will now explain in detail which costs you can deduct for your home office and how to correctly report them in your tax return.
In general, you can deduct the costs for your home office if it is the center of your professional activity. This means that you perform most of your professional tasks there and your home office is essential for your work. The costs you can deduct include rent, electricity, heating, cleaning, furniture, renovation costs, and depreciation of furnishings.
It is important that you accurately calculate the allocation of expenses for your home office between business and personal use. To do this, you need to determine the percentage of the area of your home office compared to the total area of your apartment or house. You can then report this percentage as deductible costs in your tax return.
To deduct your home office expenses for tax purposes, you must meet certain requirements. Firstly, your home office must be used exclusively or predominantly for business purposes. Additionally, you must not have another workplace available that you could use. If you meet these requirements, you can report your home office expenses in your tax return as business expenses.
For the tax deduction of your home office expenses, you should provide the following documents: lease agreement or proof of ownership, evidence of the size of your home office in relation to the total area of your apartment or house, invoices for renovation work or purchases of office furniture, and all receipts for the costs incurred for your home office.
I hope that this information has been helpful to you and I am available for any further questions you may have. Thank you for your trust and attention.
Sincerely,
Georg Nitsche
