Does it make sense to claim a home office as a tax deduction?
September 30, 2022 | 55,00 EUR | answered by Zofia Schulz
Dear tax advisor,
My name is Xenia Hoffmann and I have been mainly working from home in a home office for some time now. In the past, I did not claim the costs of my home office for tax purposes as the tax regulations in this area were not clear to me. Now I am wondering if it would be beneficial to deduct the costs of my home office for tax purposes.
My current situation is as follows: I regularly work from home in a specially set up home office. I have a desk, a computer, and everything I need for my work in this room. I bear the costs of setting up the home office as well as the ongoing operating costs such as electricity, water, and internet on my own.
I am concerned that I may have been missing out on potential savings by not deducting the costs of my home office for tax purposes. I am wondering if it could be worth it to include these costs in my tax return and if it is even possible to deduct home office expenses for tax purposes.
Therefore, my specific question to you as a tax advisor is: Is it beneficial to deduct the costs of my home office for tax purposes? What are the requirements that need to be met, and how much could the savings be by deducting my home office expenses for tax purposes? I would greatly appreciate a detailed consultation on this matter.
Thank you in advance and best regards,
Xenia Hoffmann
Dear Mrs. Hoffmann,
Thank you for your inquiry regarding the tax deductibility of home office expenses. It is indeed advisable to claim the costs of your home office for tax purposes, provided certain conditions are met. Generally, costs for a home office can be deducted as business expenses.
Firstly, it is important that the home office in your apartment or house is the center of your professional activities. This means that you perform most of your work tasks there. Additionally, the home office must be used exclusively or predominantly for work purposes. This means that private use should only occur to a very limited extent.
If these conditions are met, you can deduct the costs of furnishing your home office as well as ongoing operating costs such as electricity, water, heating, internet, cleaning, etc. for tax purposes. You can either claim the actual costs or a flat rate of 5 euros per square meter of the home office, but with a maximum of 1,250 euros per year.
By deducting your home office expenses for tax purposes, you can reduce your tax burden and save money. The exact amount of savings depends on your individual tax rate. It is definitely worth mentioning these costs in your tax return and taking advantage of the tax benefits.
I recommend that you carefully collect and keep all relevant receipts and evidence for your home office expenses so that you can prove them to the tax authorities if required.
If you have any further questions or would like a more detailed consultation, I am at your disposal. Please do not hesitate to contact me.
Best regards,
Zofia Schulz
