Can I deduct the costs of my home office for tax purposes?
June 15, 2023 | 40,00 EUR | answered by Dietrich Hohenadel
Dear Sir or Madam,
My name is Paula Melzer and I have been working from home since the beginning of the Corona pandemic. As it seems that this will continue to be the case in the future, I would like to know if I can deduct the costs for my home office from taxes.
Currently, I use a separate room in my apartment as my workspace, where I have a desk, an office chair, a computer, and other work materials. In addition, there are monthly costs for electricity, internet, telephone, and possibly also for rent.
I am concerned that these additional expenses for my home office may not be tax deductible and thus could significantly increase my financial burden. Therefore, it is very important for me to find out if and to what extent I can claim the costs for my home office on my taxes.
Are there specific requirements that I must meet in order to deduct the costs for my home office? Which expenses are tax deductible and how exactly can I include them in my tax return? Are there also ways to claim the costs proportionally if I do not use the room exclusively as a home office?
I look forward to your feedback and thank you in advance for your support.
Sincerely,
Paula Melzer
Dear Mrs. Melzer,
Thank you for your inquiry regarding the tax deductibility of costs for your home office. Indeed, this is a topic that affects many employees who have been working from home more frequently due to the COVID-19 pandemic.
In general, the costs for a home office can be claimed as tax-deductible if it is the center of your professional activity. However, it is important to note that there are certain conditions that must be met for the costs to be deductible. One of the most important points is that the home office is used almost exclusively for professional purposes. It must not be used for private purposes, such as a guest room or hobby room.
In your case, where you use a separate room in your apartment as a workspace, the chances are good that the costs for the home office are tax-deductible. This includes rent or depreciation for the space, electricity, heating, water, internet, telephone, as well as expenses for work materials such as a desk, chair, computer, etc. These costs can be claimed as business expenses in your tax return.
However, it is important to know that the deductibility of home office costs has become easier since 2020. Through the so-called home office flat rate, employees can claim an amount of up to 600 euros per year as a tax deduction without having to provide detailed evidence of actual costs. This amount will be automatically taken into account in your tax return if you meet the requirements.
If you do not use the room exclusively as a home office, there is the option to claim the costs proportionally. It is important to document the exact use of the space, for example, through time tracking or photos.
I recommend that you carefully keep all relevant receipts and invoices and, if necessary, seek support from a tax advisor to ensure that you optimize all possible tax benefits.
I hope this information is helpful to you and I am available to answer any further questions you may have.
Sincerely,
Dietrich Hohenadel
