Hobby lawi operation
January 4, 2012 | 30,00 EUR | answered by Dr. Yanqiong Bolik
Good evening.
Due to successive, permanent changes in the law (all documented), combined with tax "consultation", I was forced to register a business in 2004 because of the 33% purchasing rule, in order to not become commercially active overall.
In short, the in-house production in the specialized legal business became too expensive.
Subsequently, further changes in the law, the legal business was further scaled back. As a result: losses, which the consulting office offset with profits from the business.
I signed the tax declaration and sent it to the tax office.
Losses in the legal business from 2006 to 2009.
In 2011, a letter from the tax office requesting a review for hobby activity.
Since then, I have been dealing with this issue and am only interested in understanding how to define the term "total profit" in a way that is understandable for someone with a non-business background.
I would be grateful for a clear answer.
I will not ask an additional question at this late hour and wish you a pleasant evening.
Dear inquirer,
Thank you for your inquiry regarding the tax term "Totalgewinn", which I am happy to answer considering your input and the rules of this platform.
Please note that my explanation is based on the facts presented, and that adding, omitting, changing information, or ambiguity in the information can alter the tax result.
Totalgewinn basically means an increase in business assets in the total period, from the establishment to the sale or closure of the business. If the business has already ended, the actual result is decisive, otherwise a forecast is generally made according to income tax standards. The typical total period for the forecast is 30 years. In order to have a Totalgewinn, a positive overall result beyond the equity investment is generally required. Totalgewinn consists of the profits/losses in each period and the profit/loss on disposal/liquidation.
I hope this gives you an overview.
If you have any further questions, please feel free to use the follow-up function.
Best regards,
Dr. Yanqiong Bolik
Tax consultant
Bildstöckle 6, 70567 Stuttgart
Phone: +49 (0)711 / 9332 2657
Email: info@zdbz.de
www.steuerberatung.zdbz.de
