What about the deduction of housing expenses by the self-employed?
Posted: Thu Dec 26, 2024 4:53 am
A ruling by the Central Economic-Administrative Court (TEAC) has caused the self-employed to rejoice, as it has allowed deductions in personal income tax for housing expenses, i.e. electricity, telephone, water, gas, etc., incurred in the habitual residence when it is used as a workplace . There are many self-employed workers, especially in the professional sector, who have an office at home to carry out their activity and who have been demanding this measure for some time.
The problem is that the Tax Agency does not accept the costs of utilities for one's own home, even though it also serves as a workplace, if one does not have an independent meter that allows one to know exactly what consumption is derived from economic activity.
This requirement means that the deduction is impractical for almost all self-employed workers, since few are willing to undertake the work of installing a separate meter for electricity or contracting an additional telephone line exclusively for the activity. If we are talking about water or gas, the task is considered impossible.
The Treasury only allows denmark whatsapp shopping data the deduction of expenses and taxes derived from the ownership of the property (IBI, community of owners, proportional part of the rent or mortgage interest, etc.). These expenses were deducted based on the square meters used for the economic activity.
Now the TEAC's criteria, in line with recent rulings by the Economic-Administrative Court (TEAR) of Valencia and the High Court of Justice (TSJ) of Madrid, changes the approach to the tax relief of supply expenses. The TEAC resolves that self-employed workers may deduct these expenses, provided they can prove that they derive from their economic activity . The taxpayer must prove that they have been necessary to obtain income.
The problem is that the Tax Agency does not accept the costs of utilities for one's own home, even though it also serves as a workplace, if one does not have an independent meter that allows one to know exactly what consumption is derived from economic activity.
This requirement means that the deduction is impractical for almost all self-employed workers, since few are willing to undertake the work of installing a separate meter for electricity or contracting an additional telephone line exclusively for the activity. If we are talking about water or gas, the task is considered impossible.
The Treasury only allows denmark whatsapp shopping data the deduction of expenses and taxes derived from the ownership of the property (IBI, community of owners, proportional part of the rent or mortgage interest, etc.). These expenses were deducted based on the square meters used for the economic activity.
Now the TEAC's criteria, in line with recent rulings by the Economic-Administrative Court (TEAR) of Valencia and the High Court of Justice (TSJ) of Madrid, changes the approach to the tax relief of supply expenses. The TEAC resolves that self-employed workers may deduct these expenses, provided they can prove that they derive from their economic activity . The taxpayer must prove that they have been necessary to obtain income.