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- 4 min readRecommended
BFH Ruling: Application of the 1% Rule to Tradesperson Vehicles
The extent to which private use of a tradesperson's business vehicle must be accounted for via the 1% rule or a logbook is frequently a point of dispute with the tax office. In the following,
Tax AdvisoryAuditSource: Deubner Verlag - 2 min readRecommended
Input VAT Deduction for Company Events
To improve the working atmosphere, companies occasionally hold so-called company events. The employer incurs costs in this connection, which raises the question of the extent to which input VAT may be deducted on such expenses. Predominantly
Tax AdvisoryAuditSource: Deubner Verlag - 10 min readRecommended
BMF Circular: Income Tax Exemption for Photovoltaic Systems (§ 3 No. 72 EStG)
The Annual Tax Act 2022 significantly expanded the income tax exemption for photovoltaic systems. Following the act's adoption, numerous questions arose in practice, which the tax authorities now address in the BMF circular
Tax AdvisoryAuditSource: Deubner Verlag - 4 min readRecommended
Federal Fiscal Court Ruling: Retroactive Reimbursement of Health and Long-Term Care Insurance Contributions Across Several Years
Contributions to health and long-term care insurance that have been reimbursed to the taxpayer are subject to offsetting or addition under § 10 (4b) sentences 2 and 3 EStG, even if they
Tax AdvisoryAuditSource: Deubner Verlag - 4 min readRecommended
Federal Fiscal Court Ruling: Household-Related Services and Tradesman Services for Tenants under § 35a EStG
It is well known that household-related services and tradesman services regularly result in a tax reduction for private households. However, how are these services to be treated when a tenant has not commissioned them directly but instead claims them via the service charge statement
Tax AdvisoryAuditSource: Deubner Verlag - 3 min readRecommended
Tenant Fixtures / Structures on Third-Party Land
If a tenant bears the cost of installation or conversion work on a leased business building, these expenses may be capitalised and depreciated as part of the tenant's fixed assets, even though the building does not legally belong to them
Tax AdvisoryAuditSource: Deubner Verlag - 3 min readRecommended
Private Sale Transactions – Taxation in Cases of Short-Term Rental of Rooms
When a property used for own residential purposes is sold, the resulting capital gain is generally exempt from tax. The following section explains the various options for tax exemption in the private sale of real estate, and how the short-term rental of individual rooms affects this exemption, based on a BFH ruling.
Tax AdvisoryAuditSource: Deubner Verlag - 4 min readRecommended
Tax Reliefs for Capital Gains – Section 34 EStG
If a taxpayer disposes of a business as part of their commercial activity within the meaning of Section 16 EStG, this generally constitutes taxable income. By classifying the capital gains as extraordinary income under Section 34 EStG, certain preferential tax rates can be applied.
Tax AdvisoryAuditSource: Deubner Verlag - 3 min readRecommended
BFH Ruling: Child Benefit – Distinguishing Initial Training from Concurrent Second Training
How the granting of child benefit is to be assessed following the completion of an initial degree and the commencement of a concurrent second degree is set out below based on the case before the BFH. Case in dispute: tax official with subsequent law studies
Tax AdvisoryAuditSource: Deubner Verlag - 3 min readRecommended
Acquisition-Related Production Costs for Buildings
Many newly purchased buildings that already have a few years behind them do not fully meet the owner's requirements. Consequently, repair and modernisation measures often arise in connection with the acquisition
Tax AdvisoryAuditSource: Deubner Verlag - 2 min readRecommended
Costs for Home Emergency Call Systems – No Tax Reduction under § 35a EStG
The risk of household accidents increases significantly in old age. To mitigate this, many seniors use so-called home emergency call systems designed to ensure rapid assistance in the event of falls and similar incidents.
Tax AdvisoryAuditSource: Deubner Verlag - 4 min readRecommended
Construction Withholding Tax and Exemption Certificates for Construction Services
The Act to Combat Illegal Activities in the Construction Industry (e.g. undeclared work) introduced a tax withholding mechanism to secure tax claims on construction services. The following sets out the key principles of this tax and the points to observe
Tax AdvisoryAuditSource: Deubner Verlag - 2 min readRecommended
Taxation of Deferred Retirement
The tax consequences of deferring the start of retirement, with particular focus on the tax-free portion, are explained below on the basis of a case decided by the BFH. Case
Tax AdvisoryAuditSource: Deubner Verlag - 3 min readRecommended
Tenant Severance Payments – Immediate Expense from Rental Income
The classification of expenses incurred in connection with the acquisition and renovation of a building can frequently become a matter of dispute with the competent tax office. The issue concerns repair and modernization measures under § 6 (1)
Tax AdvisoryAuditSource: Deubner Verlag - 1 min readRecommended
Remaining Useful Life of Rental Properties Based on Valuation Reports
Landlords have the option to depreciate a rental property faster than the standard depreciation rate under the official depreciation tables if a shorter useful life can be conclusively demonstrated. This is typically done through a valuation report by an independent expert
Tax AdvisoryAuditSource: Deubner Verlag - 3 min readRecommended
Extended Trade Tax Deduction for Real Estate Companies
A GmbH – including an asset-managing GmbH – is, due to its legal form, always considered a commercial enterprise and subject to trade tax. Nevertheless, the German Trade Tax Act (Gewerbesteuergesetz, GewStG) contains certain exceptions to this tax liability, which
Tax AdvisoryAuditSource: Deubner Verlag - 5 min readRecommended
Special Depreciation – New Rental Housing Construction (§ 7b EStG)
To address the demand for more affordable housing, the federal government reactivated the special depreciation for new rental housing construction through the 2022 Annual Tax Act. The following explains the requirements for claiming the new
Tax AdvisoryAuditSource: Deubner Verlag - 2 min readRecommended
Health Insurance Bonus Programs – Income Tax Treatment
In principle, health insurance contributions must be reported in the income tax return for the contribution year pursuant to § 10 Abs. 1 Nr. 3 a) EStG. Refunds paid by the health insurer to the taxpayer, on the other hand, must be deducted from the special expenses to be claimed
Tax AdvisoryAuditSource: Deubner Verlag - 3 min readRecommended
Main Job and Minijob at Two Businesses of the Same Natural Person
Whether an employee can hold both their main employment and a minijob at two businesses of the same employer was recently examined by the Brandenburg Tax Court. Facts of the case: In the years in dispute, the plaintiff was
Tax AdvisoryAuditSource: Deubner Verlag - 4 min readRecommended
Private Use of a Company Smartphone
According to a recent BFH ruling, the private use of a company smartphone is tax-exempt under § 3 No. 45 EStG even if the employer acquires the mobile phone from its employees for a symbolic
Tax AdvisoryAuditSource: Deubner Verlag