Can I deduct tax advisor costs from my taxes?
March 15, 2023 | 50,00 EUR | answered by Ingo Koch
Dear Sir or Madam,
my name is Emilia Ahlert and I work as a freelance graphic designer. In recent years, I have regularly hired a tax advisor to take care of my tax returns and bookkeeping. This has resulted in high costs every year, which have put a strain on my budget.
Now I am wondering if I can deduct these tax advisor costs from my taxes. So far, I have never done this because I was unsure if it is even possible and how exactly it works. However, since tax advice is essential for me as a self-employed individual and I would like to optimize my expenses, it is important for me to know if I can claim these costs on my taxes.
I would like to know if the tax advisor costs are deductible as business expenses or advertising costs, and if there are specific requirements for this. I am also interested to know if there is a maximum amount I can deduct, and if I can deduct the costs in full or only partially.
Furthermore, I would like to know if I can deduct the costs for tax advice that have already been incurred in previous years retroactively.
I would greatly appreciate your support and advice on this matter, as it would mean a significant financial relief for me as a self-employed individual. Thank you in advance for your help.
Sincerely,
Emilia Ahlert
Dear Mrs. Ahlert,
Thank you for your inquiry regarding tax advisor costs. As a tax advisor, I am happy to assist you and answer your questions in detail.
In general, the costs for using a tax advisor can be claimed as business expenses or advertising costs for tax purposes. As a self-employed graphic designer, your tax advisor costs usually fall under business expenses, as they are directly related to your self-employment. Business expenses are all expenses incurred by the business and necessary for generating income. Tax advisor costs are included, as they are necessary for preparing your tax returns and bookkeeping.
However, there are certain requirements that must be met for tax advisor costs to be deductible. Firstly, the costs must actually have been incurred and can be substantiated. This is usually done through appropriate invoices or receipts. Secondly, the costs must also be reasonable, meaning they must be in proportion to the services provided.
There are no fixed regulations regarding a maximum amount. In general, you can deduct all actual tax advisor costs in full. There are no restrictions on the amount of deductible costs.
As for the retroactive deductibility of tax advisor costs, this is generally possible. You can also claim costs incurred in past years in your current tax return. It is important that you can provide evidence of the costs and present the corresponding receipts.
Overall, you can deduct tax advisor costs as business expenses in full, provided that the requirements are met. If you are unsure whether you have all the necessary documents or have further questions, I recommend seeking advice from a tax advisor. They can assist you in optimizing your expenses and correctly deducting the costs.
I hope this information was helpful to you and answered your questions. If you need further assistance, I am happy to help.
Best regards,
Ingo Koch
