Deducting interest on debt
February 27, 2012 | 30,00 EUR | answered by Dr. Yanqiong Bolik
Can I deduct the interest on the loan for our property from taxes in the context of profit and loss accounting (or otherwise), or at least the part that pertains to the business?
As small business owners, we have a business in our own house that occupies 60 square meters. The total living space is 200 square meters, of which 30 square meters are rented out. I already know that I can deduct the interest on the rented part.
Shouldn't it also be possible for the business or am I mistaken?
Dear inquirer,
Thank you for your inquiry, which I am happy to answer taking into consideration 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 the ambiguity of information can change the tax result.
Based on your information, I assume that you own the property and also bear the interest expenses. If the area is essential for your business operations, this part of the property constitutes necessary business assets of your business. The interest expenses caused by this part of the property are deductible business expenses.
I hope I was able to assist you.
If there is still uncertainty, please feel free to use the follow-up function.
Kind regards,
Dr. Yanqiong Bolik
Tax advisor
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 2132 1815
Email: info@zdbz.de
www.steuerberatung.zdbz.de
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