(2022)
Is a separate work corner also tax-deductible?
Following a landmark ruling by the Federal Fiscal Court, a home office is not recognised for tax purposes if the room is also used privately. The room costs cannot be divided into a business and private share and then considered based on the business usage share. Therefore, a work corner in the living room or bedroom does not qualify for a partial deduction of work-related expenses, nor does a room used occasionally for work (BFH ruling of 27.7.2015, GrS 1/14).
Building on this, the Federal Fiscal Court clarified that a study or office is not deductible if the work area is separated and the other part of the room is used privately (BFH ruling of 17.2.2016, X R 32/11).
The case: A business owner uses a room in his house for his office work. Part of this room is equipped with a desk and office shelves. In the other part of this room, separated by a shelf, there is a sofa, a coffee table, as well as a dining table with several chairs and a television. As there is private use, the office costs are not deductible as business expenses, even partially.
The separation is not sufficient to create two rooms from a single room. Moreover, the term "study" implies that the room is used exclusively or almost exclusively for income-generating purposes. Therefore, a partial deduction of expenses for mixed-use rooms is already excluded for this reason.
The COVID-19 pandemic has changed the working world. Many employees, but also self-employed individuals, now carry out their work from home (home office). However, they do not always have a separate room that is accepted as a study for tax purposes. Normally, expenses for a home office are only recognised as work-related expenses or business expenses if this room is separate in the home and used exclusively or almost exclusively for professional or business purposes. However, even those who do not have a separate room incur expenses for heating, electricity, or water due to their work at home.
And now they also receive tax relief: Employees and self-employed individuals who work from home and whose workspace does not meet the tax requirements for a study can claim a flat rate of 5 Euro per day as work-related expenses or business expenses. A maximum of 600 Euro per year is deductible.
