Deduct the rent from tax

Rent prepaid expenses for students

• The ruling of the Federal Fiscal Court of August 17, 2011 has far-reaching effects. All coststhat are related to your studies can be deducted from the tax in the future.
• This includes besides interest charges for a student loan, literature and the "usual" expenses for studying, including the rent.
• The rent can be offset against tax if it is necessary to stay away from home, for example when studying at another location. This also includes rent for studying abroad.
• The prerequisite for the tax recognition of all costs incurred with the course is, however, that the future occupation is directly related to the education stands.
• Anyone who will work as a computer consultant with a degree in geography should do so Tax office opposite to get in need of explanation.
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Tax advice for students

Studying costs money. But only with your second degree you can tax the costs ...

• The same applies when changing subjects. It is then no longer possible to deduct income-related expenses for the first course.

What if students don't pay taxes?

• The costs of studying, including rent, are only noticeable in the tax if income has been generated.
• If you have no income, you usually do not make a tax return. As a student, it still makes sense.
• However, there is no income from the cost of studying, tuition fees, PC and even the rent. In this case, the result of the tax return is a loss. This loss can be "carried forward", that is, it is offset against future income.
• And this is exactly where it gets interesting: the losses while studying are at first Income from employment is taken into account, the tax burden decreases at least in the first year of employment drastic.
• With regard to the Deductibility With the rent, parents should refrain from signing the rental agreement for the children in order not to neutralize this tax-relevant cost item.