(2023) What are non-depreciable assets?

Non-depreciable fixed assets include, in particular:

• Land,
• Investments,
• Other financial assets intended to serve the business on a long-term basis,
• Non-depreciable intangible assets,
• Art objects by recognised masters. In tax law, the reputation of the master is decisive for the tax treatment. 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 offers no tax advantages. However, works by (as yet) unrecognised artists, such as commercial art, can be depreciated. If the art objects are assigned to business assets, any subsequent 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).