How does the deduction of work equipment work in the tax return?
April 12, 2024 | 30,00 EUR | answered by Wolfgang Stricker
Dear tax advisor,
My name is Selma Buchner and I work as a self-employed photographer. In my work, I need a variety of tools such as cameras, lenses, computers, and printers to be able to perform my work professionally. Until now, I have regularly purchased these tools and incurred high costs.
Now I am wondering how I can deduct the acquisition costs of my tools for tax purposes. What are the options for deducting the tools in my tax return and what are the requirements that need to be met? I am concerned that I may not be fully taking advantage of tax benefits and as a result, incurring unnecessary financial losses.
Could you please explain in detail how the deduction of tools works in the tax return? Are there specific depreciation rules that I need to follow? What receipts do I need to provide for the acquisition of the tools and what expenses can be deducted exactly?
I would greatly appreciate it if you could assist me with this question so that I can optimize my tax burden and increase my monthly income.
Thank you in advance for your support.
Sincerely,
Selma Buchner
Dear Mrs. Buchner,
Thank you for your inquiry regarding the tax deduction of work equipment in your tax return as a self-employed photographer. It is important that you claim the acquisition costs of your work equipment for tax purposes to optimize your tax burden and increase your monthly income. I am happy to explain to you in detail how the deduction of work equipment in the tax return works.
In principle, you can deduct the acquisition costs of your work equipment as operating expenses in your tax return. This includes, for example, cameras, lenses, computers, and printers that you use for your professional activities. In order to claim the work equipment for tax purposes, they must be used exclusively for work purposes. Private use is not deductible.
There are various options for deducting the acquisition costs. On the one hand, you can claim the costs immediately in the year of acquisition as operating expenses. This is called immediate depreciation. On the other hand, you can depreciate the acquisition costs over the useful life of the work equipment. There are specific depreciation rules that you must follow.
For the tax deduction of work equipment, you must provide receipts that prove the acquisition and professional use of the work equipment. This includes, for example, invoices, receipts, or contracts. The costs that can be deducted include the acquisition costs of the work equipment as well as any repair and maintenance costs.
It is important to comply with the tax requirements for the deduction of work equipment in order to fully exploit tax benefits. If you are unsure, I recommend seeking advice from a tax advisor to not miss out on potential tax savings.
I hope this information helps you optimize your tax burden and increase your monthly income. If you have any further questions, please feel free to contact me.
Best regards,
Wolfgang Stricker
Tax Advisor
