Home office for income from rental and business operations
May 20, 2013 | 25,00 EUR | answered by Steuerberater Thomas Textoris
Hello,
the tax deduction for a home office was denied by the tax office with the verbal explanation that the deduction is only possible for non-self-employed activities. I believe the deduction should be granted, as the home office is the central point of my entire professional activity. I have income from the following sources:
1. from rental. The management of the units is done exclusively from the home office.
2. from business operation (travel agency in another state, whose administration is done from the home office).
3. from property partnership (rental properties in which I am involved and whose management I have taken over).
Dear questioner,
In the context of an initial consultation and your fee contribution in accordance with the regulations of this forum, I would like to answer your question.
If a home office is used for various activities within multiple sources of income, the deductibility or limitation must first be independently assessed for each activity.
If a deduction is possible for the activities carried out in the home office, the expenses related to these uses can be deducted without limit, up to €1,250, or not deducted at all, depending on the case.
Firstly, you earn income from rental and leasing activities. The home office is deductible as advertising expenses in this case. Corresponding operating expenses exist for the travel agency. A deduction for the home office is possible in principle for the mentioned sources of income.
Next, the amount of the deduction for the home office needs to be determined. Since you use the home office in the context of multiple sources of income, an unlimited deduction of expenses is possible if the center of each individual professional/business activity is located in the home office. If the home office is used for an activity where the center is not located in the home office, a deduction of up to €1,250 is possible in total.
In the case of rental activities, the center of the professional activity is not in the home office, and significant activities take place outside of the home office (judgment from FG Münster dated 02.11.2009). Therefore, only a limited deduction of expenses is possible for you overall.
The maximum amount may need to be apportioned proportionally to the individual activities, depending on the extent of work related to each source of income in the home office.
I hope I have sufficiently answered your question.
Best regards,
Thomas Textoris
Tax consultant
