Can I claim my rent as advertising costs?
May 18, 2023 | 50,00 EUR | answered by Christine Witzelmann
Dear tax advisor,
I am faced with the question of whether I can claim my rent as advertising costs in my tax return. I am an employee in a company and have no possibility to work from home. Therefore, I am forced to rent an apartment near my workplace. The monthly rent amounts to a significant sum and I am wondering if I can deduct these expenses for tax purposes.
So far, I have never listed my rent in my tax return because I was unsure if it was even possible. But since the financial burden of the rent is quite high for me, it would be very helpful if I could deduct these costs for tax purposes. I have heard that self-employed individuals can claim their rent as business expenses, but I am unsure if this also applies to employees like me.
I am worried that I may have overlooked an important opportunity for tax savings by not listing my rent as advertising costs. Therefore, I would like to ask for your assessment of whether I can actually deduct my rent as advertising costs and what requirements need to be met for this. Are there specific criteria I need to consider to claim my rent for tax purposes?
Thank you in advance for your help and support.
Sincerely,
Jakob Fuchs
Dear Mr. Fuchs,
Thank you for your inquiry regarding the possibility of claiming your rent as advertising expenses in your tax return. This question concerns many employees who, like you, must rent an apartment near their place of work in order to pursue their professional activities.
In principle, it is possible to deduct rental costs as advertising expenses for tax purposes if they are related to your professional activities. This applies to both self-employed individuals and employees. In your case, as an employee, you can deduct your rent as advertising expenses if you are required to live near your place of work for professional reasons.
The requirements for the tax deductibility of rental costs are regulated in § 9 of the Income Tax Act. Accordingly, the rental costs must be necessary and appropriate to generate, secure, or maintain income. This means that the rent must be necessary for the professional activity and should be in an appropriate proportion to the size and furnishings of the apartment.
Furthermore, you must be able to prove that your apartment is actually your main residence and that you have to live there for professional reasons. This can be demonstrated, for example, by a certificate from your employer or other documents. It is important that you carefully keep all relevant receipts and evidence to present them in case of an audit by the tax office.
It is advisable that you include your rental costs in your tax return and take advantage of the opportunity to deduct them as advertising expenses. This can help reduce your tax burden and possibly achieve tax savings. If you have any further questions or need assistance with filing your tax return, I am happy to help.
I hope that this information has been helpful to you and wish you success in deducting your rental costs for tax purposes.
Best regards,
Christine Witzelmann
Tax consultant
