Reduce the 1 % benefit with private travel expenses?

An employee also used his company car privately and paid tax on his benefit of use using the 1 % method. As he knew that he could deduct additional payments he made for the company car from the taxable benefit of use, he came up with a bold idea:

💡 Why shouldn't this also apply to the costs of a bike rack he bought himself and to the toll and ferry costs he incurred on private vacation trips?

However, the Federal Fiscal Court put the brakes on the man and denied him the cost deduction. The judges emphasized:

✅ Costs borne by employees only reduce the non-cash benefit if they would be part of this benefit if the costs were borne by the employer and would therefore be covered by the settlement effect of the 1 % rule.

✅ However, the costs recognized in the case in dispute would constitute an independent pecuniary advantage.

✅ Such private costs neither reduce the 1 % benefit nor are they deductible as income-related expenses.

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#Company car #Travel expenses #Advertising costs #1Percentadvantage #WSB