Ask a tax advisor on the topic of Tax return

Income from Section V

October 8, 2012 | 25,00 EUR | answered by Wirtschaftsprüfer André Hintz

We are a family owners' association consisting of several individuals. I am a retiree and receiver agent for the Fin A and do a lot of work on these properties from the 1950s. Depending on the extent of the necessary work, there are between 140-180 trips per year with a total mileage of approximately 25-30 km. The vehicle is registered in my name. Until 2009, these travel expenses, including additional expenses of the owners' association, were assigned and, depending on the share of each member, led to tax savings. My retirement income is naturally so low due to the impact of the profit share that no income tax is incurred. Now in 2010, these travel expenses, as well as the home office and telephone costs, were allocated solely to me. I make these trips for the owners' association. The fuel costs are covered by the owners' association. Is the approach by the Fin A correct, or can I object to this arbitrariness? The request in the tax return was the same as in previous years. By allocating the travel expenses in this way, I now have high tax special advertising costs that do not have any impact at all. Thank you for your prompt response.

Wirtschaftsprüfer André Hintz

Dear inquirer,

I would like to answer your question within the scope of an initial consultation and your fee commitment, in accordance with the rules of the online portal. My response is based on the facts presented by you.

In my opinion, the treatment by the tax authorities is correct.

In my view, the owners' association is a civil law partnership, which is taxed at the level of the partners like a partnership. The profit is determined uniformly and separately and attributed to each partner.

In the second step, all payments made by the partnership to the respective partners are recorded as special operating income. These income are offset against all expenses incurred in this context as special operating expenses.

The result from the first and second steps is the attributable profit of each partner. In my opinion, the tax authorities have acted correctly.

I hope my explanations have been helpful and remain

Yours sincerely,

André Hintz
Tax consultant

Steuerberatung@andrehintz.de