Which expenses can I claim as tax-deductible as a small business owner?
November 25, 2023 | 50,00 EUR | answered by Ulrike Voss
Dear Mr. Fröhlich,
I have been self-employed as a small business owner for several years and am facing the question of which expenses I can claim for tax purposes. So far, I have not delved deeply into the topic and am unsure of which costs I can include in my tax return.
Currently, I operate a small sole proprietorship in the field of online consulting and have regular operating costs such as rent, electricity, and internet, as well as expenses for advertising, office supplies, and professional development. Additionally, this year I purchased a new laptop to make my work more efficient.
My concerns are that I may not be maximizing potential tax benefits or that I may be reporting expenses that are not deductible. Therefore, it is important for me to know which expenses I can claim for tax purposes as a small business owner and how to correctly report them in my tax return.
My question to you as an expert in tax law is: Which expenses can I claim for tax purposes as a small business owner? Are there specific regulations or limitations that I need to be aware of? Are there possibly expenses that I have overlooked but are also deductible?
Thank you in advance for your support and advice.
Best regards,
Andreas Fröhlich
Dear Mr. Fröhlich,
Thank you for your inquiry and your interest in tax matters related to your self-employment as a small business owner. As an expert in tax law, I would like to help you and provide you with a detailed answer to your question.
As a small business owner, you generally have the opportunity to deduct certain expenses to reduce your tax burden. Deductible business expenses include, for example, the rent for your home office or office, electricity and internet costs, expenses for advertising and marketing, office supplies, as well as professional development. You can also deduct the acquisition costs for your new laptop as business expenses and claim them for tax purposes.
It is important that you keep the receipts and invoices for your expenses carefully and report them correctly in your tax return. Note that the expenses must be directly related to your self-employment in order to be tax-deductible. In addition, the expenses should be reasonable and verifiable.
However, there are also restrictions and special regulations to consider, especially as a small business owner. As a small business owner, you are exempt from sales tax, so you cannot claim input tax. In addition, there are certain expenses that are not deductible, such as private expenses or expenses for personal livelihood.
It is advisable to seek advice from a tax advisor or a tax law expert to ensure that you fully utilize all tax benefits and do not overlook any deductible expenses. A tax advisor can also help you fill out your tax return correctly and report all relevant business expenses.
I hope that my answer was helpful to you and I am available for any further questions. I wish you success and all the best for your self-employment as a small business owner.
Sincerely,
Ulrike Voss
