How does the deduction of work equipment work in the tax return?
April 9, 2024 | 30,00 EUR | answered by Wolfgang Lenzner
Dear tax advisor,
My name is Leon Möller and I have a question regarding the deduction of work equipment in my tax return. I work as a freelance photographer and use various work tools such as cameras, lenses, computers, and software for my work. So far, I have claimed the acquisition costs of these work tools as business expenses in my tax return.
However, I have heard that there is also the possibility to claim work tools through the so-called depreciation for wear and tear (AfA) for tax purposes. However, I am unsure how exactly this process works and whether it is even applicable for my work tools.
I am concerned that I may be missing out on tax benefits by not utilizing AfA correctly. Therefore, I would like to know how I can correctly claim the deduction of work tools in my tax return and whether it is advisable in my case to use AfA instead of business expenses.
I would greatly appreciate your support and guidance on this matter to ensure that I optimize my tax return and do not miss out on any potential tax benefits.
Thank you in advance for your help.
Sincerely,
Leon Möller
Dear Mr. Möller,
Thank you for your question regarding the deduction of work equipment in your tax return as a freelance photographer. It is understandable that you are thinking about how to optimize your tax return to not miss out on any potential tax advantages.
First of all, it is important to know that work equipment such as cameras, lenses, computers, and software can usually be claimed as business expenses. This means that you can declare the acquisition costs of these work equipment as business expenses in your tax return for the year in which you purchased them, and thus deduct them from your taxes.
Depreciation (AfA) is another way to claim work equipment for tax purposes. Depreciation involves spreading the value of the work equipment over a certain period of time, as these items lose value with use. This means that you do not claim the entire purchase value of the work equipment as a business expense in the year of acquisition, but spread the value over several years.
Whether it is beneficial to use depreciation instead of business expenses depends on various factors such as the useful life of the work equipment, its value development, and your individual tax context. In many cases, however, it can be advantageous to use depreciation, as it allows you to achieve tax benefits over a longer period of time.
To correctly claim work equipment in your tax return and determine if depreciation is suitable for your work equipment, I recommend consulting a tax advisor or tax expert. A professional tax advisor can help you find the optimal tax structure for your tax return and ensure that you take advantage of all potential tax benefits.
I hope this information is helpful to you and I am happy to answer any further questions you may have.
Sincerely,
Wolfgang Lenzner, Tax Advisor
