Can I claim my home office as a tax deduction?
June 7, 2023 | 50,00 EUR | answered by Lilli Reuter
Dear Tax Lawyer,
My name is Otto Zollmann and I have been working from home for some time now. Due to the current situation surrounding the COVID-19 pandemic, my employer has allowed me to work from home. This has resulted in additional costs for setting up and equipping my home office workspace, such as purchasing a desk, an office chair, or a printer.
I am wondering if I can claim these costs as tax deductible. So far, I have not received any information on whether and to what extent I can deduct the expenses for my home office from taxes. I am concerned that I will be left with the costs at the end of the year, without any tax benefit for me. Since I do not have unlimited financial resources, it is important for me to know if I have the possibility to at least deduct a portion of the expenses for my home office workspace from taxes.
Can you please explain to me if and in what form I can claim the costs for my home office as tax deductible? Are there specific requirements that I need to meet in order to deduct the expenses? What documents or receipts do I need to provide for this? Are there any maximum limits or flat rates that I should be aware of?
I thank you in advance for your assistance and look forward to your response.
Sincerely,
Otto Zollmann
Dear Mr. Zollmann,
Thank you for your inquiry regarding the tax deductibility of costs for your home office. Indeed, this is a very relevant topic, especially in times like these, when more and more people are working from home.
In general, it is possible to claim the costs for the setup and equipment of your home office workspace as tax-deductible expenses. These are considered business expenses that can be included in your income tax return. Deductible costs may include the purchase of furniture such as a desk and office chair, technical devices like a computer or printer, as well as costs for telephone, internet, and electricity. Renovation or remodeling costs may also be eligible for deduction under certain conditions.
However, in order for the expenses for your home office to be recognized for tax purposes, certain requirements must be met. Firstly, the workspace in your apartment or house must be clearly separated and used exclusively for business purposes. There should be no personal use of the space. Additionally, the workspace should be necessary for carrying out your professional activity, meaning that no other workspace is available. Furthermore, you must be able to provide evidence of the costs for your home office. Therefore, you should collect and keep receipts and invoices for the expenses incurred.
There are no fixed flat rates or maximum limits regarding the deductible costs. In general, the actual costs can be fully deducted as long as they are reasonable and justifiable. However, it is important to note that the costs for the home office should be in proportion to your total income.
Lastly, I would like to emphasize the importance of seeking advice from a tax consultant or a specialist in tax law to ensure that you are maximizing all possibilities for the tax deductibility of your home office expenses.
I hope that this information has been helpful to you and I am available to answer any further questions you may have.
Best regards,
Lilli Reuter
Tax Lawyer
