Table of contents:

Building insurance in the tax return
Building insurance in the tax return

Video: Building insurance in the tax return

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Do you work at home most of the time and wonder whether you can therefore include building insurance in your tax return? The good news: Under certain conditions, you can get part of the money back.

Table of contents Table of contents Deducting building insurance from tax - is that possible?

  • What is building insurance?
  • Can I deduct building insurance against tax?
  • Can I deduct the office tax?
  • Deduct building insurance for landlords and tenants
  • And what about other building-related insurance?
  • Conclusion: for whom is it worth specifying the building insurance in the tax return?

Table of contents Table of contents Deducting building insurance from tax - is that possible?

  • What is building insurance?
  • Can I deduct building insurance against tax?
  • Can I deduct the office tax?
  • Deduct building insurance for landlords and tenants
  • And what about other building-related insurance?
  • Conclusion: for whom is it worth specifying the building insurance in the tax return?

As a self-employed person or freelancer, the home quickly becomes a workplace. So you are right to ask yourself: Can I state building insurance in the tax return? In addition, you have set up the study with great effort so that you are as productive as possible. That must be tax deductible, right? We bring clarity to the tax chaos and tell you whether you can specify the building insurance and your study in the next tax return - and for whom it is most worthwhile.

What is building insurance?

First things first: residential building insurance makes a lot of sense and should definitely be taken out. It protects homeowners from various types of damage that can otherwise be extremely expensive. Mostly, the main building, outbuildings, garage and also garden houses are included in the insurance. It assumes the costs of storm and hail damage, fire and tap water damage (e.g. broken pipes). Unfortunately, such damage is not so unlikely and can affect anyone. Around 70, 000 insurance claims in 2016 show that building insurance is effective and sensible protection.

Can I deduct building insurance against tax?

It depends on. In Germany, insurance costs can actually only be deducted from personal insurance. This includes health, nursing, accident, old age, occupational disability and liability insurance. Here you can specify the contributions as special expenses in your tax return under certain rules.

Building insurance is one of the typical property insurance policies - that is, those that cover property and property damage. Tax sales are generally not possible here. Exception: If you use your property for work, i.e. generate taxable income there. Then you can set the building insurance proportionately as advertising costs.

Arbeitszimmer
Arbeitszimmer

If you only use your own room for work, you can deduct the costs for this if necessary.

Photo: iStock / Jelena Danilovic

Can I deduct the office tax?

There are certain rules under which you can file the cost of your study with the tax return. The prerequisite is that you have a profession in which no other job is available. As a teacher, you usually don't have your own office to correct homework. The same applies to sales representatives, the self-employed or people who only work from home (home office). In order to be able to claim the workplace for tax purposes, however, it must not simply be a corner in the room where the desk and Co. are located. You already have to use a delimited space exclusively for your work. If you meet the conditions, you can get up to € 1, 250 refunded. If you only do home office, the reimbursement amount is even unlimited.

You can also be entitled to the cancellation of building insurance here. The amount is calculated pro rata over the number of square meters. For example, if your living space is 150 square meters and your study measures 15 square meters, the share of the total building insurance is ten percent. With a premium of 380 euros, that would be 38 euros, which you will get back. You can submit the contribution together with your household insurance, which you can also claim pro rata for your study. The same principles apply to freelancers and the self-employed as to employees. The premiums for building insurance appear here proportionately as expenditure in an income-expenditure surplus calculation or as operating expenditure. If you use a building completely for commercial or freelance purposes, you can claim the full amount of the building insurance against tax.

Deduct building insurance for landlords and tenants

If you rent a living space, you will receive taxable income, but you will still not be able to deduct building insurance from tax. According to the Ordinance on Operating Costs (Section 2 No. 13 BetrKV), building insurance belongs to the ancillary costs of the tenant. Since the landlord does not incur any costs and passes them on to the tenant (s), he also receives no tax compensation.

The tenant usually does not get the cost of building insurance back. But here, too, you can fall back on the exception that applies to the study. You can state the pro rata costs of building insurance that fall under the operating costs in your tax return.

Versicherung in der Steuererklärung
Versicherung in der Steuererklärung

Most of the time, it is only a small part of building insurance that you get paid.

Photo: iStock / AndreaObzerova

And what about other building-related insurance?

In addition to building insurance, there are other insurance policies that relate to property ownership. You can take some of these into account in your next tax return:

  • The construction service insurance protects you from damage to a construction site. However, the costs are only tax deductible for planned rental properties. If you build for your own home, you go empty-handed.
  • If your shell has been damaged by fire, explosion or lightning, a fire shell insurance helps. It is usually taken out free of charge with building insurance. Therefore there is nothing to be deducted from the tax here.
  • The builders liability insurance protects builders against liability risks and is a personal insurance. Accordingly, it can be deducted from tax.
  • If you are a landlord or own a property, the home and landowner liability insurance protects you from liability risks. You can specify property owners in the tax return. Landlords can transfer the costs to the tenants, which means that tax compensation is no longer possible.
  • A construction worker or construction accident insurance should be taken out for everyone who helps at a construction site. It protects relatives and third parties who help with the construction. If an accident happens, the costs will be covered. You can then set the insurance in the tax return.

Conclusion: for whom is it worth specifying the building insurance in the tax return?

You can only specify building insurance in your tax return under certain conditions. The financial relief will probably be limited since you will only get a small portion of the insurance reimbursed. It is most worthwhile for building owners who use their entire living space for commercial activities. In the end, however, it should be said: Building insurance is more than necessary and offers effective protection against serious damage - even if we hope that you will never have to use it.

Marlen Bruckner

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