How does the deduction of work tools work in the tax return?
March 22, 2023 | 30,00 EUR | answered by Wolfgang Stricker
Dear tax advisor,
my name is Sophia Buchner and I work as a freelance graphic designer. In my work, I require various tools such as a powerful laptop, a graphics tablet, and specialized design software. So far, I have always purchased and used these tools myself.
My question pertains to the possibility of deducting these work tools in my tax return. I have heard that work tools used for professional purposes can be claimed as tax deductions. However, I am unsure of how exactly this works and what requirements need to be met.
Currently, I have listed the work tools in my income tax return, but I am not sure if I have done everything correctly. I am worried that I may have overlooked something or provided incorrect information, potentially missing out on tax benefits.
Could you please explain to me how the deduction of work tools in the tax return works? What specific steps do I need to follow and what documents should I have ready? Are there any specific limits or restrictions that I need to be aware of?
Thank you in advance for your assistance.
Best regards,
Sophia Buchner
Dear Mrs. Buchner,
Thank you for your question regarding the deduction of work tools in your tax return as a freelance graphic designer. It is very important that you correctly declare your work tools in your tax return in order not to miss out on any tax benefits. I will therefore explain to you in detail how the deduction of work tools works and what steps you should take.
In principle, as a self-employed person, you can claim the acquisition costs of work tools necessary for your professional activity as business expenses in your tax return. This includes, for example, a powerful laptop, a graphics tablet, and specialized design software that you use for your work. These costs reduce your profit and therefore also your tax burden.
In order for the deduction of work tools in your tax return to be recognized, certain conditions must be met. The work tools must be used exclusively for professional purposes or at least predominantly for professional purposes. If you also use the work tools privately, you must take the private portion into account in the tax return.
To correctly declare the work tools in your tax return, you should document the acquisition costs and the purchase date of the work tools. It is also advisable to keep all receipts, such as invoices and contracts, in order to be able to present them in case of a possible audit by the tax office.
There are no fixed limits or restrictions for the deduction of work tools, but the acquisition costs should be reasonable and justifiable. For expensive work tools that are used over several years, the costs can also be depreciated over the useful life.
In summary, it is important that you correctly declare the work tools that you use for your freelance activity in your tax return in order to benefit from tax advantages. Make sure to keep all necessary documents and to clearly demonstrate the extent of professional use of the work tools.
I hope this information helps you and answers your question in detail. If you have any further questions or need assistance, I am happy to help.
Best regards,
Wolfgang Stricker
Tax Advisor
