Flat rate for business expenses
There are no statutory flat rates for business expenses for the self-employed and freelancers. However, the Income Tax Act provides for exceptions for some professional groups. These people (e.g. child minders, midwives, journalists and writers, artists) are allowed to set fixed monthly amounts or fixed percentages of their income and are also subject to a maximum limit.
- Day mothers can deduct EUR 300 per month.
- Self-employed midwives 25% of the income up to a maximum of 1,535 euros / year.
- Full-time self-employed journalists and writers 30% of their income up to a maximum of 2,455 euros / year.
- Part-time self-employed artists, writers or teachers according to § 3 No. 26 EStG up to 25% or 614 euros / year.
Like all statutory provisions, these flat rates are subject to possible changes. Therefore, you should always keep yourself informed whether the flat rates for your professional group have changed. Important and always up-to-date information on tax issues can be found on the website of the Federal Ministry of Finance, for example .
Flat rate for rental and leasing income
If you rent out a house or a condominium , you can either set the actual expenses or a flat rate for it. In this case, too, the tax office accepts a lump sum of 16 euros for each rented property for your account management. In addition, there are flat-rate travel expenses if you have to look after your property, for example in the event of repairs. Repairs also include, for example, attaching a satellite dish or connecting a broadband cable. You can set a flat rate of 50 euros for the necessary journeys.
Advertising expenses for capital income
Capital income arises when a private person invests money and generates income from it in the form of interest, dividends or price increases. You have to pay tax on this income according to the Income Tax Act. However, you are not subject to the rate of income tax per se.
In 2009, a comprehensive reform of the capital gains tax of the German legislature came into force. From this point on, all income is treated equally and there is no longer any distinction between the types of capital income. Specifically, the following income is included in investment income:
- Income from dividends
- Interest income, for example on fixed-term deposits or overnight deposits
- Income from the sale of securities
- Income from trading in financial derivatives such as options or certificates
For example, if an investor sells shares and makes a profit, he has to tax the income accordingly. However, he may not claim any advertising costs for it.
The income from capital assets as well as the income-related expenses that you want to deduct belong in the KAP annex .
Advertising expenses for renting and leasing
You have greater options than with capital income when it comes to income-related expenses for renting and leasing . Here, for example, the depreciation or loan interest can be taken into account and used as income-related expenses.
If the property is renovated, minor maintenance work can be claimed as income-related expenses. Caution is advised here, however, as larger investments are not to be seen as one-time advertising costs, but have to be amortized over several years.
The income from letting property and your advertising costs for this, you need to in the Annex V list. Examples of deductible advertising expenses are:
- Depreciation for the rented property
- Financing costs for the rented property
- Running costs such as property tax or heating, but also repairs and costs for associated gardens
- If you rent a furnished apartment, you can also deduct furniture costs
- Ongoing costs in relation to tenants such as advertisements to search for tenants or legal fees in the event of a legal dispute as well as ongoing administrative costs for correspondence and telephone calls
Are there any advertising expenses for other income?
For other income, such as the occasional rental of movable property, you can generally deduct income-related expenses. However, if they exceed the income, these are not “offset” against the remaining income. The tax advantage through income-related expenses is generally given, but is not additionally transferred to other types of income.
For your tax return, you have to declare the other income in Annex SO . This includes, for example, property sales or other private sales, but also maintenance services.
Commercial expenses for retirees
Pensioners can also claim income-related expenses. This could be the cost of union fees, for example. If these are not asserted, a lump sum of 102 euros will be used. It looks a little different with self-employed pensioners .
Pensioners have their income in the system R specify. This includes payments from insurance companies and pension institutions as well as retirement funds and company pension schemes.
What costs can you deduct as advertising expenses?
Now let’s take a look at what costs you can claim as income-related expenses. This list is not exhaustive, but we try to offer you the broadest possible overview of the permissible income-related expenses that you can deduct from the tax. These must be entered on your tax return in lines 31 to 79.