What exactly counts as material and financial expenses?
May 8, 2020 | 25,00 EUR | answered by Steuerberater Knut Christiansen
Hello,
I am a freelance musician and music teacher and I wanted to apply for the immediate assistance from the federal government.
The following response came from the authorities: "We would like to point out that the liquidity bottleneck must exclusively take into account the operational material and financial expenses."
What exactly are the material and financial expenses for a musician?
Can I claim travel expenses to the music school (at 0.3€ per km), contributions to the Artists' Social Security Fund, occupational disability insurance, or car payments? These are part of my operating expenses, right?
I also use a part of my apartment for teaching, could a portion of the rent be counted as operating expenses as well?
Thank you for your response.
Good morning and thank you for your inquiry, which I would like to answer as part of an initial consultation.
Basically, only business expenses can be claimed. This also includes business trips with a private car, which can then be claimed at 0.30 EUR/km. However, careful records should be kept (travel log for the three months) so that these trips can also be proven later on.
Contributions to the KSK or disability insurance do not count as deductible expenses. The loan installment only belongs to the business if the car is also business property. In that case, you could not claim a flat rate of 0.30 EUR/km, because the actual expenses for the vehicle (fuel receipts, insurance, depreciation, loan interest, etc.) would be considered.
You can deduct the cost of a home office. But here too, the proportionate costs must be clearly explained (amount and proportion of the costs).
Please note that this forum cannot replace an initial consultation, but rather serves as an initial tax assessment. Therefore, no liability can be assumed from this online consultation, including in terms of the fee.
Best regards
Knut Christansen
Tax advisor
