What options do I have to optimize my tax burden?
August 14, 2023 | 50,00 EUR | answered by Ulrike Voss
Dear tax lawyer,
My name is Lukas Otremka and I work as a self-employed entrepreneur in the construction industry. In recent years, I have noticed that my tax burden has been increasing steadily and I am now faced with the question of how to optimize my taxes in order to avoid having to pay unnecessarily high amounts to the tax office.
Currently, I am operating as a sole proprietor and I am taxing my income according to the regular taxation system. I am wondering if it would be beneficial for me to choose a different legal form in order to save taxes. I am also interested in possibilities for tax optimization in terms of depreciation, special expenses, and potential funding programs or tax benefits that I have not yet taken advantage of.
My concern is that due to insufficient knowledge in tax law, I may have missed opportunities to optimize my tax burden and as a result, I am paying unnecessarily high taxes. Therefore, I would like to know from you what specific measures I can take to reduce my tax burden and overall optimize my tax situation.
What options are available to me as a self-employed entrepreneur in the construction industry to optimize my taxes? Which legal form would be most advantageous for me and what tax planning opportunities can I use to reduce my tax burden?
Thank you in advance for your support and expertise.
Sincerely,
Lukas Otremka
Dear Mr. Otremka,
Thank you for your inquiry regarding optimizing your tax burden as a self-employed entrepreneur in the construction industry. It is understandable that you are thinking about how to make your taxes more efficient to avoid unnecessary burdens. I am happy to provide you with some tips and suggestions that may help improve your tax situation.
First and foremost, it is important to consider whether a different legal form for your company could be beneficial for tax savings. As a sole proprietor, you are subject to income tax under the regular taxation system. By establishing a GmbH or a GmbH & Co. KG, you could benefit from lower tax rates and tax advantages. These legal forms also offer liability limitations and other legal benefits.
Furthermore, you should review which tax planning options you are already using and which are still untapped. These include depreciation for your business purchases, special expenses such as further education or business insurance, as well as funding programs or tax incentives for companies in the construction industry. It is important that you make use of all available options to reduce your tax burden.
Another important aspect is proper bookkeeping and documentation of your business transactions. Only in this way can you take advantage of all tax benefits and avoid potential tax risks. Careful and professional tax advice can help you optimize your tax situation and identify potential cost-saving opportunities.
In summary, as a self-employed entrepreneur in the construction industry, you have various options available to optimize your taxes. Choosing the right legal form, utilizing tax planning options, and seeking professional tax advice can help reduce your tax burden and improve your overall tax situation.
Therefore, I recommend that you consult with an experienced tax consultant or tax lawyer to analyze your individual tax situation and find tailored solutions for optimized tax planning.
I hope these tips are helpful to you and I am available for any further questions you may have.
Best regards,
Ulrike Voss
