Tax advisor Jurgen Dieter grainy informs the Bundesfinanzhof has established a new legal situation with his current case-law concerning the tax deductibility of joint expenses as advertising and operating costs. The Mannheim tax expert Jurgen Dieter grainy reports on the revision of this subject issued by the tax authorities as a response to the Court decision. A mixed expenditure consists of private as well as professionally or operationally justified interests. According to the previous legal situation, it was forbidden to effect the tax deductibility of the not private reasonable share of the costs through a sharing of these shares. In its judgment in 2009, revised its previous case-law of the BFH and allowed the tax effective distribution of joint expenses. The practical implementation of this decision was made by new directives of the German tax authorities. According to the new legal situation, Division and subsidy mixed expenses are possible if none of the exclusion conditions is that established by the tax authorities.
Basic condition of deductibility is objectively guided proof that parts of the expenditure actually were caused by events, are allocated to the operation or Berufssphare. The taxable person makes no credible evidence or doubts remain on the side of the Treasury on its veracity, the deduction is excluded. Objective divided into private and tax-deductible portions of expenditure is objectively impossible, also eliminates the deduction. The financial management excludes mixed justified costs the taxpayer, its not private conditional Anteil is below ten percent, due to a negligible insignificance of the deduction. Mixed expenses incurred due to private life are also non-refundable. Examples include familial causes, the costs of financial management or a driving licence. Also expenses for protection are not deductible and Security purposes, as well as so-called representation expenses, which serve to foster and maintain the social or economic status level of the taxpayer. So the not private caused part of a mixed expenses can be deductible, its monetary value must be determined.
For this purpose, the expenditure by means of objectively verifiable criteria in private as well as business or operational-related shares is to separate. For this, the criteria of time, quantity and space often come to the application. For example on a business anniversary celebration 80 business customers and 20 private friends of the entrepreneur paid hosted, it is a mixed expenditure, which at the same time operational conditional and includes private caused hospitality expenses. After the proper share allocation 80 percent of the cost are considered operationally-related and thus tax recoverable, while the remaining 20 per cent due to their private causation are not deductible. The financial management through effective information and arguments from the to convince tax mitigation taking into account joint expenses, often requires a professional insight into the relevant rules of the authority. The commitment of tax experts in this context causes a significant advantage in the granting of tax deductions. The Mannheim tax advisor Jurgen Dieter grainy is his clients with many years of experience and expertise in achieving its fiscal concerns to the side. He answered questions about the deductibility of joint expenses and all other tax issues at any time. Press contact contact: Steuerberater Jurgen Dieter grainy o 4, 5, 68161 Mannheim Tel 0621 10069 fax. 0621 13358 email: Homepage: