How can I save taxes if I am self-employed?
July 29, 2022 | 50,00 EUR | answered by Anna Richter
Dear tax lawyer,
My name is Tatiana Freudenberger and I work as a freelance photographer. In recent years, I have noticed that my tax burden is increasing and I would like to find ways to save on taxes.
Currently, I pay a significant portion of my income to the tax office and I wonder if there are legal ways to reduce my tax burden. I have already registered a business and keep track of my income and expenses.
However, I am unsure about the tax benefits available to self-employed individuals and what tax tricks I could use to minimize my tax burden. I worry that I may be evading taxes if I do not take advantage of all the opportunities for tax savings, but I am also not sure if I am doing everything correctly.
Could you please explain to me what tax benefits self-employed individuals have and what legal ways there are to save on taxes? Are there specific depreciation options for self-employed photographers? What expenses can I claim for tax purposes and how can I optimize my income to reduce my tax burden?
I am very grateful for your help and look forward to your tips and advice on improving my tax situation.
Thank you in advance.
Sincerely,
Tatiana Freudenberger
Dear Mrs. Freudenberger,
Thank you for your inquiry regarding the optimization of your tax situation as a self-employed photographer. It is understandable that you are looking for legal ways to reduce your tax burden and take advantage of any tax benefits. I would be happy to explain some points that could be relevant specifically for self-employed individuals, especially for photographers.
As a self-employed individual, you have various tax benefits that you can use to minimize your tax burden. This includes, for example, the ability to deduct business expenses from your taxes. This means that you can claim all costs related to your self-employment as a photographer, such as rent for your workspace, office supplies, equipment, advertising, training, or travel expenses.
As a photographer, you can also benefit from special depreciation options. This means that you can depreciate the acquisition costs of expensive equipment like cameras, lenses, computers, etc. over the useful life, rather than deducting them as business expenses immediately. This allows you to deduct a portion of the costs over several years to reduce your taxes.
Furthermore, there is also the opportunity to optimize income by paying attention to proper invoicing and structuring of your fees. It may also be beneficial to plan income and expenses strategically to take advantage of tax benefits.
It is important to keep careful records of your accounting and retain all relevant receipts to be able to prove everything correctly in case of a tax audit. If you are unsure whether you are utilizing all tax benefits or doing everything correctly, I recommend seeking advice from a tax advisor or a specialist in tax law. They can provide you with individual tips and advice tailored to your situation.
I hope that this information is helpful to you and that you can optimize your tax situation in the future. If you have any further questions, please feel free to contact me.
Best regards,
Anna Richter
Tax Lawyer
