How do I deduct something from my taxes?
Hello,
I recently decided to offer a service as a self-employed person and since I travel a lot I wanted to know if I can deduct the rental car costs from my taxes and what exactly deducting means?
Do I understand correctly that this portion will be credited to my total sales, meaning I'll pay less tax, or will I always get the rental car costs reimbursed by the tax office? Would a company car be more worthwhile if you buy a small car instead of renting a car every time?
Best regards.
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That would be nice… but unfortunately not the reality.
What you can write off directly are the taxes paid on the rental car.
You can offset this against the sales tax you receive from your customers and then pay less to the tax office.
The net cost of the vehicle can, of course, be claimed as an expense, thus reducing your income. Accordingly, you also pay less income tax.
Your tax advisor is responsible for the exact procedures and how things should be booked.
If you are not familiar with the subject, you should have it done by a specialist.
Hello Pharos,
Have you registered a sole proprietorship? Have you applied for the small business regulation with the tax office?
It's best to use accounting software like Sevdesk.de, where you can enter your income and expenses. Expenses reduce profit, and you pay taxes on the amount of profit.
Yes, of course, a small used car is much cheaper in the long run than renting a car every time.
Do I understand correctly that this portion will be credited to my total sales, meaning I'll pay less tax, or will I always get the rental car costs reimbursed by the tax office?
Neither – you won't be credited with any of the sales, and you won't be reimbursed for the rental car costs by the tax office!
You can only reduce your taxable income by declaring operating expenses, which will reduce your profit.
Greetings siola55
You have registered a business and are self-employed and are you seriously asking?
Of course, operating expenses are considered expenses
Of course, you will not get the whole amount back from the tax office
You do the EÜR – don't you?
Maybe you should consult a tax advisor.
There is a lack of basic knowledge that should be available as a company