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Deductible from insolvency claims?

January 1, 2014 | 25,00 EUR | answered by Anton Pernitschka

Dear Sir or Madam,
12 years ago, the insolvency proceedings were opened for my former employer. The insolvency administration has recognized approximately 7000 EUR of my claims (remaining vacation days, variable salary, expenses) and I am also listed in the insolvency table of the corresponding local court. The proceedings are still ongoing and insufficiency of assets has been determined. It seems unlikely that I will ever receive any of my claims. Is it possible to deduct this loss on my income tax? I am currently employed under an employment contract.
Thank you.

Anton Pernitschka

Dear questioner,

In the context of an initial consultation and your fee commitment, in compliance with the regulations of this forum, I would like to answer your question.

Your (uncollectible) claims are not deductible for income tax purposes, as in your case they are considered "private" claims, as opposed to "business" claims.

The Federal Fiscal Court has recognized a deduction for advertising costs, for example for the waiver of loan claims by an employee against their employer.

Best regards,

Anton Pernitschka
Tax consultant