The deduction of home office expenses has been further limited for entrepreneurs since 2017. What does this mean for getting investment deductions on furnishings?
Restriction also for tenants
Deduction of the cost of a home office is still possible only if it is an independent study. This means that you could also rent out the room to any third party. This requires that the room has its own entrance and sanitary facilities. Moreover, you must generate sufficient income in or from the study. Since this year, this limited deduction also applies to tenants.
Limit deduction also for establishment
If the deduction for your home office is not possible, the same applies to its furnishings. So you cannot deduct the cost of a desk or a lamp, for example, from your profit. If deduction is possible, then this also applies to the furnishing costs.
Tip: Your computer and similar equipment is not counted as furnishing the office. Deduction of expenses is therefore possible for this.
Investment deduction on office furnishings
The fact that furnishing costs usually do not result in a deduction from profits does not prevent the investment deduction. You can therefore get an investment deduction on the furnishing costs, even if the office is not independent. However, you must meet the ordinary conditions for the investment deduction.
Note! For the investment deduction for small-scale investments, it is particularly important that you invest more than €2,300 in a year, and less than €312,176 (2017 figures). You only get the deduction for assets costing €450 or more. You must also include the business assets in your business assets.
Size of investment deduction
The investment deduction decreases relatively as your total investments increase in a year. Up to an amount of investments of €56,192, the deduction is 28%.