How can I properly deduct my business expenses as a freelancer?
October 17, 2023 | 40,00 EUR | answered by Lilli Reuter
Dear tax lawyer,
I am Norbert Köhler, a self-employed freelancer who wants to do his tax return for the first time this year. I have some questions regarding business expenses and hope that you can help me.
To give you some background: As a freelance artist, I work from home and therefore use a part of my apartment as a home office. I also have regular costs for materials, office supplies, phone and internet bills, as well as travel expenses to client meetings. So far, I have collected all receipts, but I am unsure which expenses I can actually deduct for tax purposes.
The current situation is as follows: I have already started sorting my documents and looking for relevant receipts. However, I lack the necessary expertise to be sure that I am doing everything correctly. I am concerned that I might overlook or incorrectly deduct business expenses, which could lead to tax payments or even penalties.
My concerns mainly revolve around the fact that as a novice, I may lose track of the complex tax regulations and end up facing unexpected financial burdens at the end of the year. Therefore, my question to you is: How can I as a freelancer deduct my business expenses correctly to take advantage of tax benefits and stay on the safe side?
I would be very grateful for your professional advice and support in optimizing my tax return. I would greatly appreciate specific tips on which business expenses are deductible and how to correctly report them in my tax return.
Thank you in advance for your help.
Best regards,
Norbert Köhler
Dear Mr. Köhler,
Thank you for your inquiry and your trust in my expertise as a tax lawyer. It is understandable that as a self-employed freelancer, you are unsure about which business expenses you can deduct for tax purposes and how to stay on the safe side. I am happy to provide you with a detailed answer to your questions.
As a freelance artist, you can generally deduct a variety of business expenses to reduce your tax burden. This includes costs for materials, office supplies, phone and internet expenses, as well as travel to client meetings. The use of your home office is also generally deductible, provided it is the center of your professional activities and used exclusively for business purposes.
To correctly report your business expenses in your tax return, it is important to carefully collect and organize all receipts. This includes both invoices and receipts for your expenses. These receipts should be sorted by categories to keep a better overview and not overlook any expenses.
When reporting your business expenses in your tax return, make sure they are traceable and plausible. It is recommended to create a separate list of your business expenses and attach the corresponding receipts. This way, you can substantiate your claims in case of an audit by the tax office and quickly answer any queries.
Furthermore, it is advisable to stay informed about current tax regulations and rules to ensure that you take advantage of all opportunities for tax optimization. In this case, it may be helpful to seek support from a tax advisor or a specialized tax lawyer to avoid missing out on any tax benefits.
If you are unsure about which business expenses are deductible or how to correctly report them in your tax return, I am at your disposal. You can also contact me for individual consultation to optimize your tax situation and minimize potential risks.
I hope that this information has been helpful to you and I am available for any further questions.
Best regards,
Lilli Reuter
Tax Lawyer
