Is a separate work corner also tax-deductible?

Following a landmark ruling by the Federal Fiscal Court, a home office is not recognised for tax purposes if the room is also used privately. The room costs cannot be divided into a business and private share and then considered based on the business usage share. Therefore, a work corner in the living room or bedroom does not qualify for a partial deduction of work-related expenses, nor does a room used only occasionally for work (BFH ruling of 27.7.2015, GrS 1/14).

Building on this, the Federal Fiscal Court clarified that an office is not deductible if the work area is separated and the other part of the room is used privately (BFH ruling of 17.2.2016, X R 32/11).

The case: A business owner uses a room in his house for office work. Part of this room is equipped with a desk and office shelves. In the other part of the room, separated by a shelf, there is a sofa, a coffee table, a dining table with several chairs, and a TV. As there is private use, the office costs are not deductible as business expenses, even partially.

The separation is not sufficient to create two rooms from one. Moreover, the term "office" implies that the room is used exclusively or almost exclusively for income generation. Therefore, a partial deduction of expenses for mixed-use rooms is already excluded.

The COVID-19 pandemic has changed the working world, and many work from home. If no separate office is available, employees and self-employed individuals can deduct a daily allowance of 6 Euro for a maximum of 210 days per year. The workplace at home does not have to meet specific requirements; it can be in a corner, at the kitchen table, or in a separate room. It is important that the work is carried out "predominantly" from home on that day and the primary workplace is not visited.