What expenses are not deductible?
Normal living expenses and expenses for the production or maintenance of tax-exempt income are not deductible as expenses for the production of income. This mean you cannot deduct the following expenses:
- your family’s expenses, the rent for your apartment, childcare and housekeeping expenses
- ordinary clothing expenses
- expenses for leisure activities
- acquisition costs for consumer electronics (phones, cameras, TVs), even if they are partly used for the production of income
- subscriptions to newspapers and magazines
- medical and health care costs – see if you are entitled to a deduction for reduced capacity to pay taxes due to high medical expenses
- physical exercise expenses, even if your work or employer requires you to have exceptional physical capacity.
Example: If you occasionally pick wild berries and earn tax-exempt income from this work, you cannot deduct the expenses incurred from berry-picking as expenses for the production of wage income.
Please note: The expenses for the production of dividend income are deductible even if the dividend is tax-exempt income.