(2022) What are non-depreciable assets?

Non-depreciable fixed assets include, in particular:

• Land,
• Investments,
• Other financial assets intended to serve the business permanently,
• Non-depreciable intangible assets,
• Art objects by recognised masters. In tax law, the treatment depends on the master's reputation. Art objects by recognised masters cannot be depreciated, as it is assumed that these works do not lose value. Assigning them to business assets therefore brings no tax advantages. However, works by (not yet) recognised artists, such as commercial art, can be depreciated. If the art objects are assigned to business assets, any later capital gains must be taxed.

Non-depreciable fixed assets are not depreciated. The acquisition or production costs can only be deducted as business expenses in the income surplus calculation at the time of their sale or withdrawal. The book value must be entered in the line "Net book value of disposed assets" (§ 4 para. 3 sentence 4 EStG).