Field help: Special depreciation in accordance with sect. 7g, para. 5 and 6 of the Income Tax Act (EStG)
Special depreciation in accordance with sect. 7g, para. 5 and 6 of the Income Tax Act (EStG)
Special depreciation in accordance with sect. 7g, para. 5 and 6 of the Income Tax Act (EStG)
Do you want to claim special depreciation according to sect. 7g paragraphs 5 and 6 Income Tax Act (EStG)?
Do you want to claim special depreciation according to sect. 7g paragraphs 5 and 6 Income Tax Act (EStG)?
Do you want to claim special depreciation according to sect. 7g paragraphs 5 and 6 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 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.