How can I claim my advertising costs in my income tax return?
April 18, 2022 | 40,00 EUR | answered by Tatiana Herrmann
Dear tax advisor,
My name is Ludwig Rüppel and I am faced with the challenge of claiming my business expenses in my income tax return. In my professional work as a self-employed individual, I incurred various expenses last year that are related to my work. I would like to claim these expenses as deductions in order to reduce my tax burden.
My business expenses include costs for my home office, office supplies, professional literature, training courses, travel expenses, and insurance. In total, my business expenses amount to a significant sum that I would like to include in my income tax return.
My concern is that I am not sure how to correctly report my business expenses in my income tax return so that they are recognized for tax purposes. I want to make sure that I can provide all necessary receipts and evidence and avoid making any errors in reporting my business expenses.
Could you please explain to me how I can correctly claim my business expenses in the income tax return? What receipts and evidence do I need to provide? Are there any specific limits or regulations that I need to consider? And what tips can you give me to optimize my business expenses?
Thank you in advance for your assistance and advice.
Sincerely,
Ludwig Rüppel
Dear Mr. Rüppel,
Thank you for your inquiry regarding claiming your business expenses in your income tax return. Business expenses are costs related to your professional activities that can be claimed as tax deductions. It is important to accurately report these costs to reduce your tax burden and take advantage of potential tax benefits.
To correctly report your business expenses in your income tax return, you should first gather all relevant receipts and documentation. This includes invoices for your home office, office supplies, professional literature, further education, travel expenses, and insurance. These receipts serve as proof of the actual costs you incurred in your self-employment.
There are no fixed limits for business expenses, but the costs should be reasonable and justifiable. Therefore, you should not report exaggerated or inappropriate expenses. Additionally, the business expenses must be directly related to your professional activities.
There are special regulations for home office costs: they can only be deducted if the home office is the center of your professional activities. You must also exclude any personal use and specify the area and proportional costs.
To optimize your business expenses, make sure to report and document all relevant expenditures completely. It is also important to keep the receipts and documentation well-preserved as the tax office may want to review them in case of an audit. You may also consider seeking advice from a tax advisor to ensure that all business expenses are reported accurately.
I hope this information is helpful to you and that you can successfully claim your business expenses in your income tax return. If you have any further questions, please feel free to contact me.
Best regards,
Tatiana Herrmann
