Questions & Answers
Answers to common questions.
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656 questions · Page 14 / 14
What is the basis for deducting work-related expenses despite tax-exempt wage replacement benefits?
In its ruling of 23 November 2000 (VI R 93/98) on bankruptcy compensation (Konkursausfallgeld), the BFH held that § 3c EStG does not preclude the deduction of work-related expenses, as there is no direct economic link between the expenses and the wage replacement benefit. According to the prevailing view, this case law also applies to insolvency benefits (Insolvenzgeld).
As of: September 2022
Was an appeal allowed against the decision of the FG Münster?
No, the FG Münster did not allow an appeal. The court reasoned that the rulings are individual case decisions in which only established case law is applied.
As of: March 2023
At what point must occupational disability exist in order to qualify for the allowance under § 16 EStG?
Occupational disability within the meaning of social insurance law must exist at the time of the disposal transaction, i.e. the sale of the business. If recovery occurs in the meantime and occupational disability no longer exists, the entitlement to the allowance lapses, unless the 55th year of age has been completed.
As of: November 2022
Do cosmetic repairs count toward acquisition-related production costs?
Yes. In its ruling of 14 June 2016 (IX R 22/15), the BFH held that cosmetic repairs such as painting work do not typically qualify as recurring annual maintenance. They must therefore be included when assessing the 15% threshold.
As of: June 2023
Do pension payments or annuities count when determining the center of activity for a home office?
No. When examining whether the home office constitutes the center of all business and professional activity (§ 4 Abs. 5 Satz 1 Nr. 6b Satz 2 EStG), pension payments under § 19 Abs. 2 Satz 2 Nr. 1 Buchst. a EStG are disregarded (BFH ruling of 11.11.2014 – VIII R 3/12). Legal commentary extends this principle to annuity income as well. Only income requiring active engagement during the assessment year is relevant.
As of: September 2023
Section 33 EStG or Section 35a EStG – which takes precedence for garden redesigns?
If expenses are deductible under both Section 33 EStG and Section 35a EStG, they must primarily be claimed as a tradesperson service under Section 35a EStG. The reason is that Section 33 EStG first requires exceeding the reasonable burden threshold, whereas Section 35a EStG immediately grants a 20% deduction on the labor portion of the tradesperson's invoice.
As of: June 2022