(2024) Must all assets be depreciated?

Depreciable tangible and intangible assets must generally be "depreciated", i.e. the acquisition or production costs are spread over the standard useful life. Each year, the so-called "depreciation for wear and tear" (AfA) can be deducted.

To be specified separately are

• AfA on immovable assets, e.g. buildings,
• AfA on intangible assets, e.g. acquired business or practice value,
• AfA on movable assets, e.g. machines and vehicles,
• AfA for the home office,
• Immediate depreciation for low-value assets up to 800 Euro (until 2017: 410 Euro),
• Collective depreciation for low-value assets from 251 to 1.000 Euro,
• Special depreciation according to § 7g EStG,
• Reduction amounts according to § 7g para. 2 EStG.

You must record assets in a continuously maintained inventory list with the acquisition or production costs and the date of their acquisition, production or contribution (§ 4 para. 3 sentence 5 EStG) in the following cases.

This applies to

• non-depreciable assets of fixed assets,
• depreciable assets of fixed assets acquired, produced or contributed to business assets after 5 May 2006,
• certain current assets acquired, produced or contributed to business assets after 5 May 2006. This concerns shares in corporations, securities and comparable non-certificated claims and rights, land and buildings of current assets.