Ask a tax advisor on the topic of Income tax return

home office / place of business

February 5, 2010 | 30,00 EUR | answered by Dipl.BW/SB Ulrich Stiller

Hello,

I am a freelance journalist and I write my articles exclusively at home in a home office (a separate room within the apartment).

I have previously lived in rental accommodation.

Now I have bought a condominium.

Here, too, I have set up a separate, enclosed room as a home office (desk, chair, PC, shelves). This home office is also the center of my professional activity / the exclusive place of business.

Question:
Where and how can I make tax deductions?
Depreciation (for how long?)?

Thank you & best regards

Dipl.BW/SB Ulrich Stiller

Dear advice seeker,

Thank you for your inquiry, which I would like to answer based on your information and in the context of your work as a freelance journalist as follows:

As a freelance journalist, you generate income from self-employment within the meaning of § 18 paragraph 1 no. 1 EStG. According to the new regulation of § 4 paragraph 5 sentence 1 no. 6b EStG by the StÄndG 2007, expenses for a home office can be tax deductible if the home office is the center of your entire business and professional activities. However, the constitutionality of the new regulation will be reviewed by the Federal Constitutional Court (Case No. 2 BvL 13/09). If the value, calculated based on the area, is no more than one fifth of the fair value of the entire property AND not more than 20,500 EUR, then it is not considered necessary business assets. Nevertheless, you can claim partial depreciation, usually 2% of the acquisition costs of the condominium unit without land share, partial ancillary costs, and partial interest expenses, among others, as business expenses. You do this in your tax assessment, by declaring the deductible portion of the home office as a business expense.

I hope my explanations have been helpful to you.

Yours sincerely,

Ulrich Stiller
Tax advisor