Training costs for a new field of work
May 25, 2012 | 25,00 EUR | answered by RAin/StBin Henriette Regulla-Schiessl
Hello,
I am a registered merchant and operate my publishing house as a sole proprietorship.
I would like to diversify my income from self-employment and am interested in further training for real estate investments.
My question:
Can this training be classified as a business expense, or would it make sense to expand the business license in advance to include the activity as a "real estate investor" or similar designation in order to ensure tax recognition as a business expense?
What would be the most broadly worded formulation for this new income stream that you would recommend for the expansion of the business license?
Thank you very much!
Dear Questioner,
Thank you for your inquiry, which I would like to answer in the context of an initial consultation, taking into account your input and the rules of this platform.
The response is based on the facts you have provided.
Adding, omitting, or altering information, ambiguities, or inaccuracies in the facts can change the tax result.
An operating expense occurs when the expenditure is actually or economically related to a specific profit-making intention.
In your case, there are operating expenses incurred in advance for future commercial activities.
Training costs, even in uncertain or without professional practice, can be considered anticipated operating expenses (evidence problem).
Training costs and thus only consideration as special expenses are given when you have undergone initial vocational training.
According to the facts you have provided, this is not the case for you.
Therefore, the training costs should be claimed as anticipated operating expenses. I believe it makes sense to expand the business license beforehand to also document to the tax office that you have a profit-making intention.
Since you mention both "training for real estate investments" and "real estate investor," it is not entirely clear to me whether you want to promote "real estate investments" as a form of investment or act as a real estate investor yourself.
In the event that you want to promote investments, you could register as a "financial advisor." I believe this designation is not subject to any requirements.
However, I recommend clarifying this with the relevant Chamber of Commerce.
This forum cannot provide advice on this matter.
I hope this information was helpful to you.
Best regards,
Henriette Regulla
Lawyer
Tax advisor
