(2022)
Is a home office deductible for managing the photovoltaic system?
By operating a photovoltaic system, you generate income from a business. Various activities are involved in the management of the photovoltaic system: correspondence and billing with the network operator, checking incoming payments, monthly VAT returns, annual VAT declaration, income surplus calculation, evaluations, etc. Such activities are mostly carried out at the dining table, but often also in a home office. The question is whether the home office is recognised for tax purposes and the costs can be deducted as business expenses from business income.
In principle, it is possible to claim expenses for a home office as business expenses up to 1,250 Euro, because "no other workplace is available for the business activity" (§ 4 Abs. 5 Nr. 6b EStG). However, the deduction of business expenses is excluded if the home office is not necessary due to the nature and scope of the activity - at least according to the tax authorities (OFD Rheinland vom 10.7.2012, S 2130-2011/0003-St 142).
HOWEVER: The Federal Fiscal Court ruled on 8.3.2017 (IX R 52/14) as follows: "The term home office requires that the respective room is used exclusively or almost exclusively for business/professional purposes. It is irrelevant whether a home office is necessary for the activity." The Federal Fiscal Court has recently reaffirmed its view from March 2017. According to this, the "necessity" of the home office is not relevant. The "necessity" is not a criterion for deduction. Therefore, a home office can also be deductible if the room is used almost exclusively for professional purposes. The amount of time spent on office work is not relevant (BFH ruling of 3.4.2019, VI R 46/17).
A home office for managing a photovoltaic system is not deductible if it is also used privately to a significant extent. In the case of a mixed-use room, a division of costs and a partial deduction of business expenses is not permitted (BFH ruling of 17.2.2016, X R 1/13).
This is based on the fundamental decision of the Grand Senate on the mixed use of a home office: If a home office is also used privately or a room is not used almost exclusively for professional purposes, the costs cannot be deducted as business expenses, even partially. In any case, the room costs may not be divided into a professional and private share and then deducted for tax purposes with the professional usage share (BFH ruling of 27.7.2015, GrS 1/14).
The lower court had allowed the division of costs for the mixed-use room and recognised half as business expenses for the income from the "photovoltaic business". The office costs were to be "divided in a reasonable manner based on the respective usage, provided the business or private reason is not of completely minor importance. A reasonable basis for division could be the ratio of private and business time shares for the use."
However, this generous view is outdated due to the above-mentioned BFH ruling (FG Munich of 28.4.2011, 15 K 2575/10).
