(2022)
Office costs: Double maximum amount for two people?
Since 2005, the tax authorities have applied the deduction restriction for home offices on an object-related basis. This means that the home office costs can only be deducted once up to 1.250 Euro, regardless of the number of users. So, if a couple of teachers share a home office, each cannot deduct costs up to 1,250 Euro; instead, this maximum amount must be divided according to the usage ratio.
It must be checked whether each person meets the personal deduction requirements. The argument against a doubling or multiplication of the maximum amount is that the room costs are not higher with multiple users than with use by just one person (BMF letter dated 2.3.2011, BStBl. 2011 I p. 195, para. 21). According to previous legal regulations, a couple of teachers using two small rooms of 14 sqm each as home offices could deduct the costs twice up to 1.250 Euro as business expenses. However, if the couple uses one room of 28 sqm together, the costs can only be deducted once up to 1,250 Euro, i.e. each spouse can only deduct 625 Euro as business expenses. This seems unfair.
Currently, the Federal Fiscal Court has changed its previous legal opinion and that of the tax authorities in favour of taxpayers: If two people share a home office and each meets the personal deduction requirements (no other workplace), each can deduct their expenses up to the maximum amount of 1.250 Euro as business expenses or operating costs. Thus, the "object-related" view no longer applies, but a "person-related" view, so each user can deduct their cost share either up to 1.250 Euro, unlimited or not at all (BFH rulings of 15.12.2016, VI R 53/12 and VI R 86/13).
- The BFH judges have obviously looked at the law correctly for the first time and found that "the wording does not provide a basis for reducing the deduction amount of 1.250 Euro for the taxpayer (proportionately) because another taxpayer also uses the home office exclusively for business or professional activities. The law does not provide for a division of the deduction amount among several taxpayers in the case of joint use of a home office." The wording of the law does not indicate that the taxpayer should only be entitled to the deduction amount of 1.250 Euro in full if they use the home office alone. There are no indications that an exception to individual taxation should be made when considering costs for a professionally used home office. Aha!
- If spouses share a home office with joint ownership, the costs are generally allocated half to each spouse. If both meet the conditions for the limited deduction, each is entitled to a deduction of up to 1.250 Euro. The same applies to a jointly rented flat by spouses or partners. The rent payments are then considered to be made on behalf of each spouse/partner. The actual usage of the home office is therefore not relevant.
- The case: A couple of teachers share the home office in their family house. The costs amount to 3,000 Euro, so each has a share of 1,500 Euro. The tax office and the tax court recognise the costs in total with 1,250 Euro and consider a share of 625 Euro as business expenses for each spouse. However, the BFH now accepts a cost share of 1,250 Euro for each spouse.
The Steuerle couple share a home office in their own home. For Mrs Steuerle, it is the professional centre of her work, while Mr Steuerle uses it for a secondary job. The home office costs amount to 10.000 Euro in total, which are allocated half to each.
Mrs Steuerle can fully deduct her cost share of 5.000 Euro as business expenses or operating costs. For Mr Steuerle, the deduction limit of 1,250 Euro applies. Previously, due to the object-related application, his cost share of 5.000 Euro was only recognised with 625 Euro (half of 1.250 Euro). According to the new legal situation, 1.250 Euro are deductible.
By the way: The previous object-related application of the maximum deduction amount is also illogical for another reason: If you use two home offices at two different locations, e.g. at your place of residence and at an external place of work, the costs are only deductible up to 1.250 Euro in total. The same applies if you change the home office during the year or set up another room as a home office. This is then again a person-related application, isn't it?
