Professional study: tax deduction is possible!
Before corona, it was the exception, now it is often the rule: the home office. Nowadays, a significant proportion of the workforce works from home, where they naturally also need a home office. But when can the costs of a home office actually be claimed for tax purposes? The Federal Fiscal Court (BFH) recently published a ruling that is likely to be decisive for future case law. The BFH states that it is sufficient for the tax deduction that a room is used almost exclusively for professional purposes. Accordingly, the study does not have to be urgently required.
Study or not? Federal Fiscal Court overturns judgment of the tax court
In the case in question, the claimant worked as a flight attendant and used a room in the detached house she lived in with her husband as a study for professional purposes. She claimed EUR 1,250 for the study in her income tax return. The justification: No other workplace was available for the necessary administrative activities of her profession. However, the responsible tax office disagreed and assessed the income tax without the EUR 1,250 for the study. The flight attendant then lodged an appeal, which was unsuccessful. The action brought against the appeal before the competent tax court also ended in defeat for the claimant. However, the Federal Fiscal Court ruled differently and considered the flight attendant's appeal to be well-founded. The judges from Munich overturned the ruling of the tax court.
If no other workplace is available, a tax deduction is possible
The BFH did not follow the view of the tax authorities and considered the requirements for deducting the expenses for the home office to be met. The decisive factor was that no other workplace was available for the flight attendant's professional activities. In principle, § 9 para. 5 in conjunction with § 4 para. § Section 4 para. 5 sentence 1 no. 6b EstG stipulates that a taxpayer cannot deduct their expenses for a home office as income-related expenses. However, a deduction limited to EUR 1,250 is possible if no other workplace is available for the professional activities. The question of whether the business activities could have been carried out at another place in the house, for example at the living room or kitchen table, is not decisive. The decisive factor is that the expenses are caused by business activities and the study is used almost exclusively for professional administrative activities and purposes. This circumstance is sufficient for a tax deduction. If the study is the focus of a person's business activities and therefore their profession, it may even be possible to fully deduct the costs of the study. On the other hand, rooms that are not used exclusively for professional activities, but are also used to a large extent for private purposes, are not deductible.
What does the ruling mean in practice?
For professionals who have a home office, the ruling of the Federal Fiscal Court can bring financial benefits. Even if such a room does not appear to be absolutely necessary, expenses can be deducted. It is necessary for the room to be used almost exclusively for business purposes and not for private purposes on a larger scale.
