Field help:
(2019)
Special depreciation in accordance with sect. 7g, para. 5 and 6 of the Income Tax Act (EStG)
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
These are the
rules for special depreciation:
- In the case of taxpayers subject to the net income method, the profit may not exceed 100.000 Euro - excluding the investment deduction amount. This applies primarily to freelancers, who are allowed to calculate their profits by means of a net income method (EÜR), irrespective of turnover and profit thresholds, while tradespeople with a profit of 60.000 Euro or more are required to keep accounts. In these cases, the business assets are decisive.
- In the case of farmers and foresters, the economic value (excluding housing value) or, in the new federal states, the equivalent economic value may not be higher than 125.000 Euro.
- 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.
