The special depreciation in accordance with 7g para. 5 Income Tax Act (EStG) can be claimed for up to 20% of acquisition/production costs - distributed across five years (from the year of acquisition/production). After this (from the start of the 6th year), the residual value is set off in a linear manner, spread throughout the remaining years in which the movable asset is used.

• In the business year in which the deductions are to be made, the profit may not exceed 200.000 Euro, without taking into account the investment deductions and regardless of whether the profit is determined by means of net income method (Einnahmen-Überschussrechnung) or by balance sheet accounting (Bilanzierung).
• The special depreciation can be claimed without an investment deduction amount having been formed and deducted beforehand in accordance with section 7g para.1 to 4 of the Income Tax Act (EStG).
• The special depreciation can be used not only for newly acquired assets, but also for assets aquired second hand.
• Special depreciation is only granted if the asset is used exclusively or almost exclusively, i.e. at least 90%, for business purposes at a company in Germany, during the year of acquisition/production and the following business year.

An asset disposal is the premature retirement of an asset, before its useful life has expired.

There are basically three different reasons for an asset disposal:

• Asset disposal through sale,
• Asset disposal without sale (for example, theft, scrapping, loss),
• Asset disposal by private withdrawal.

Asset acquisition is defined as an asset that cannot be used independently (e.g. accessories and extensions to an existing asset) that has been acquired as an asset.

Enter here the amount of the acquisition costs.

Acquisition costs are all the expenses you have incurred to acquire an item for your business.

Indicate here a meaningful designation for the asset.

Enter here the book value of an asset at the beginning of the profit calculation period.

The book value is the value of an asset as it appears in your financial records. It results from the acquisition or production cost of the asset minus depreciation up to that point.

At the beginning of the profit calculation period, on 1 January 2024, the book value generally corresponds to the acquisition or production cost, as no depreciation has yet been recognised. Depreciation reduces the book value over time to reflect the loss in value of the asset.

Note: The "start of the profit calculation period" is always 01.01.2024.

The book value at the end of the profit calculation period is the book value at the beginning of the profit calculation period minus asset disposals and, if applicable, depreciation amounts plus asset acquisitions.

Enter here the acquisition / production date for the asset.

Depreciable assets must always be written off i.e. the acquisition or production costs must be distributed over the normal useful life. The so-called deduction for wear and tear (AfA) is deductible each year.