What are the tax implications of using my property as a home office?
January 11, 2022 | 50,00 EUR | answered by Tatiana Seiler
Dear tax advisor,
I am reaching out to you with a question regarding the tax implications of using my property as a home office. For some time now, I have been working from home and using a part of my living space as an office. I have always done my tax returns myself, but I am uncertain about how to properly treat the use of my home office for tax purposes.
My property is owned by me and I have exclusively used it myself, without generating any rental income. I am self-employed and operate my business from home. The spaces of my home office are used solely for professional purposes.
I am concerned that I may face tax consequences, as I also use my property for personal purposes. I want to ensure that I consider all relevant tax aspects and avoid making any mistakes that could lead to unwanted tax bills or other issues.
Could you please explain to me what the tax implications of using my property as a home office are? Are there any specific regulations or deductions that I should consider in my tax return? What documents or information do you need from me in order to provide me with a thorough answer?
Thank you in advance for your assistance.
Sincerely,
Ulrike Pasche
Dear Mrs. Pasche,
Thank you for your inquiry regarding the tax implications of using your property as a home office. It is understandable that you may feel unsure and want to ensure that you are considering all relevant tax aspects correctly. I am happy to explain to you the possible tax consequences and how you can treat your home office correctly for tax purposes.
In general, the use of a part of your property as a home office is tax deductible if you are self-employed and run your business from home. You can claim the costs of your home office as operating expenses and therefore reduce your tax burden. Deductible costs include rent, electricity, heating, cleaning costs, telephone and internet expenses, as well as depreciation of furniture and office equipment.
It is important that you clearly separate the professional and private use to avoid issues with the tax authorities. Therefore, you should measure the area of your home office precisely and determine the proportion of the total area of your property. You can then claim this proportion as operating expenses.
To correctly handle the tax implications of using your home office, you should fill out the EÜR attachment (income surplus calculation) in your tax return. Here, you enter all income and expenses related to your business, including the costs of your home office. Additionally, you should collect and keep receipts and invoices for your operating expenses to be able to present them in case of an audit by the tax authorities.
There are also special regulations and deductions for the home office, such as the home office lump sum. This amounts to 5 euros per day that you use your home office and can be claimed up to a maximum of 1,250 euros per year. Depreciation of furnished office rooms is also possible if you use them exclusively for business purposes.
I recommend contacting a tax advisor who can assist you with the tax treatment of your home office. They can provide you with additional tips and ensure that you are considering all relevant tax aspects correctly.
I hope that this information has been helpful to you and I am available for any further questions.
Best regards,
Tatiana Seiler, Tax Advisor
