The home office is playing an increasingly important role in Germany's working environment. However, there is not always room for a complete office space within one's own household. Often, a corner in the living room, for example, has to do. These work corners, however, are not eligible for tax benefits.
The BFH has once again expressed itself clearly on this matter. According to its ruling, costs for rooms used for mixed purposes cannot be claimed for tax purposes.
As a general rule: The costs of a home office are only deductible for tax purposes if the room is used almost exclusively for professional purposes. A hobby room or guest room is therefore ruled out as a tax-privileged home office. "In addition to a room furnished as an office, a home office requires that it be used exclusively or almost exclusively for business or professional purposes," the BFH states on this matter. Furthermore, a tax-privileged home office requires that no other workplace is available to the employee for their activity (e.g., teachers). Where costs can be claimed, the upper limit of EUR 1,250 per year applies. Note: If it can be demonstrated that the home office constitutes the center of the business or professional activity, the actual costs are tax-deductible in full amount!
Frequently asked questions
Frequently asked questions
Is a work corner in the living room tax-deductible?
No. The BFH has clarified that costs for mixed-use rooms such as a work corner in the living room cannot be claimed for tax purposes. A home office must be spatially separated and used almost exclusively for professional purposes.
What are the requirements for a tax-recognized home office?
The room must be furnished as an office and used exclusively or almost exclusively (at least 90%) for professional or business purposes. In addition, no other workplace may be available to the taxpayer for that activity, as is typically the case for teachers.
Can a hobby room or guest room be deducted as a home office?
No. Rooms that are also used privately – such as hobby rooms or guest rooms – do not meet the criterion of near-exclusive professional use and therefore do not qualify as a tax-deductible home office.
What is the maximum deductible amount for a home office?
Provided the requirements are met, costs of up to EUR 1,250 per year can be claimed. However, if the home office is demonstrably the centre of all business or professional activity, the actual costs are fully deductible.
When are the actual costs of a home office fully deductible without limitation?
The EUR 1,250 cap does not apply if the home office constitutes the centre of all business and professional activity. In this case, the actual expenses can be deducted in full as income-related expenses or business expenses.