Deducting Presents for Xmas / Chanuka

Deducting the Expenses for an Internet Address

When starting or running a business, not only the physical but also the internet address can play a crucial role. Can you deduct the costs for purchasing a domain from a person or company already using the name? The BFH made a final decision between the tax office and the tax payer (October 19, 2006 III R 6/05, published on February 14, 2007).

Deductions Permitted  for Sold Real Estate

When you have sold real estate and have signed the contract in front of the notary public then this is a clear scenario for your tax office. You have given up you interest in achieving income. The consequence of this loss is that you cannot deduct any expenses anymore. Well, no rule without an exception as the decision of FG Hessen (re 3 K 1524/04) shows.

Dispute on Intent to Create an Accruing Reserve

Full Deduction of Costs for Entertaining Freelancers

Normally, a business person may deduct for entertainment 70% of the expenses as operational costs. However, as the Finanzgericht (= Tax Court ) Rhineland-Palatinate (re 1 K 1962/05). shows again there is no rule without an exception.

Life Insurance as Financial Instrument Deductible?

When financing the purchase of a real estate or something else likewise costly, a life insurance can be an item needed to secure your loan from the bank. Normally, costs of a life insurance are only a personal deductible and have no influence on your profit from business or the surplus of your income over the expenses from renting. The Federal Tax Court gave its decision to this issue on February 25, 2009 (re IX R 62/07).

Rules for a Driver’s Log Book

Teachers Books as Business Expenses

Can the tax office really deny the deduction of books, magazines, etc. which he needed for class? Is your Finanzamt really correct when it considers such expenses as belonging to the private sphere and therefore not deductible? Well, the Federal Fiscal Court told the tax office in its judgment of May 20, 2010 (re VI R 53/09) whether or not.

Unusual Financing Requires Proof of Intention of Acquiring Income

On May 10, 2007, the Federal Tax Court (re IX R 7/07) clarified the taxpayer’s duty that he needs to prove his intention to acquire profit when using unusual financing strategies.