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Limit professional expenses based on results?

KV
04/10/2024
Question

I expect another negative result for the 2023 financial year. Does it make sense not to declare all my professional expenses, as otherwise I will end up with a ‘too’ negative result?

I currently declare all work-related expenses, such as transport costs, EGW, training, mobile phone, laptop, and small equipment. Despite a turnover of around 20,000 euros, depreciation from previous years means that I will still end up with a negative result for 2023 (i.e. -4K). This is the third year in a row, with last year’s result being -900 euros.In 2023, I was enabled in my main occupation for three quarters, but due to low income, I switched to a secondary occupation in the last quarter.

Dear KV,

But did you really make such a big loss as a main occupation? The tax authorities will find that strange, as they will wonder what you lived on for the whole year. You indicate that you had more expenses than income that year and therefore have no money left to live on.

As a secondary occupation, you still have a salary on the side, so it matters less and the tax authorities won't ask so many questions about a small loss.

Yes, I was paying far too much rent in relation to the amount of customers. That is one of the reasons why I switched to a secondary occupation in the last quarter and stopped working at that location with high rent.

The tax authorities may indeed find it strange, but it is true.Is it advisable to eliminate transport costs/EGW/... from the costs, for example, so that the result is more positive? Or is it strange to include such costs for the 2022 financial year and then not in 2023?

Or can we say that it doesn't matter much whether you make a loss of 3K or 1K?

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