Is there a maximum limit for the deductibility of work equipment in the income tax return?
March 17, 2024 | 40,00 EUR | answered by Andreas Stricker
Dear Tax Advisor,
My name is Georg Huber and I have a question regarding the deductibility of work tools in my income tax return. I am a self-employed engineer and use various work tools, such as a laptop, a smartphone, and professional literature, to carry out my work.
In the past, I have regularly included these work tools in my income tax return and deducted them accordingly. Now I am wondering if there is a limit to the deductibility of work tools. Could it be that at some point I will no longer be able to deduct all of my work tools in the tax return?
I am concerned that my expenses for work tools may not be fully deductible anymore and that my tax burden could increase as a result. Therefore, I would like to know if there is a limitation or cap that I need to consider when deducting work tools.
What options do I have to maximize the deductibility of my work tools in the income tax return and ensure that I do not have any tax disadvantages? Are there specific criteria or requirements that I must meet in order to continue deducting my work tools in full?
I thank you in advance for your support and advice.
Sincerely,
Georg Huber
Dear Mr. Huber,
Thank you for your question regarding the deductibility of work equipment in your income tax return. As a self-employed engineer, it is understandable that you are thinking about how to optimally claim your expenses for work equipment to avoid possible tax disadvantages.
As a self-employed individual, you can include the costs of work equipment in your income tax return as business expenses and thus claim them as tax-deductible. Deductible work equipment includes items such as computers, smartphones, professional literature, office supplies, as well as specialized tools or equipment necessary for your professional activities.
There is no fixed limit for the deductibility of work equipment in the income tax return. As long as the expenses for work equipment are work-related and reasonable, you can deduct them in full as business expenses. However, it is important that you properly document and substantiate all expenses to avoid potential inquiries from the tax office.
To maximize the deductibility of your work equipment, make sure that the costs are indeed work-related and do not include any personal elements. Additionally, clearly separate work equipment from personal purchases and use them solely for your professional activities. If, for example, you also use the laptop for personal purposes, you must document the work-related portion and only include that in your tax return.
It is advisable to carefully keep all receipts and invoices for your work equipment and be able to present them to the tax office if necessary. If you are unsure about whether certain expenses are deductible as work equipment, feel free to contact me as a tax advisor for individual advice.
I hope I have answered your question regarding the deductibility of work equipment in the income tax return thoroughly. Please do not hesitate to contact me if you have any further questions.
Sincerely,
Andreas Stricker
Tax Advisor
