Which operating expenses can be included in the tax return?
August 28, 2023 | 40,00 EUR | answered by Wolfgang Lenzner
Dear tax advisor,
My name is Sandra Mellert and I have been running a small graphic design business for two years. In the past, I have always done my tax return myself, but I have heard that there are many business expenses that I may not have taken into account. Therefore, I would like to know which business expenses I can include in my tax return to reduce my tax burden.
I work from home and therefore have some costs related to my business. These include, for example, the rent for my home office, the purchase of computer and printer, phone and internet costs, as well as office supplies. Additionally, I also have costs for advertising and marketing, such as the creation of business cards and online advertisements.
Overall, I am unsure which of these costs I can include in my tax return and which I cannot. I am worried that I may be leaving money on the table by not claiming all of my business expenses. Therefore, it would be very helpful for me to know which business expenses I can include in my tax return and how to correctly account for them.
Could you please explain to me exactly which business expenses I, as a graphic designer, can include in my tax return and how to correctly account for them? I would greatly appreciate your assistance.
Thank you in advance for your help.
Best regards,
Sandra Mellert
Dear Mrs. Mellert,
Thank you for your inquiry regarding business expenses in your tax return as a graphic designer. It is very important to accurately report all relevant costs in order to reduce your tax burden and not miss out on any potential tax benefits.
As a self-employed individual working from home, you actually have a variety of business expenses that you can claim in your tax return. Here are some of the most important business expenses that are relevant to graphic designers:
1. Rent for the home office: If you use a home office exclusively for your professional activity, you can claim the proportionate rent as a business expense. This also applies to utilities such as electricity, water, and heating.
2. Purchase of computer and printer: The costs of acquiring work tools such as computer, printer, software, and accessories can also be deducted as business expenses. Alternatively, there is also the option of depreciation over several years.
3. Telephone and internet costs: As a graphic designer, you are likely heavily reliant on a reliable internet connection. The monthly costs for telephone and internet can also be reported as business expenses.
4. Office supplies: Expenses for office supplies such as paper, pens, folders, etc. can be deducted as business expenses. Even smaller purchases like envelopes or postage can be taken into account.
5. Advertising and marketing: Costs for creating business cards, flyers, banners, online ads, or placing ads in trade magazines can be claimed as business expenses.
To properly account for these business expenses, it is advisable to carefully keep and document all receipts and invoices. It is best to maintain a separate account or category for your business expenses to ensure a clear separation of personal and business costs.
It is also advisable to seek advice from an experienced tax advisor to ensure that all business expenses are reported correctly and that you may be able to take advantage of further tax benefits.
I hope this information is helpful to you and that you can accurately report your business expenses in the future. If you have any further questions or require personal advice, I am at your disposal.
Best regards,
Wolfgang Lenzner
Tax Advisor
