The imputed depreciation among the imputed costs , which, independent of commercial law and tax optimization efforts reflect the actual depreciation in the company.
The imputed costs play a role especially in internal accounting and are often used as the basis for the price calculation or the determination of the imputed profit, which can differ greatly from the result of the annual financial statements.
In terms of commercial and tax law, scheduled depreciation is also carried out if an asset does not lose value despite wear and tear. This is often the case with real estate in particular. There are also objects, such as vintage cars, whose value generally increases over time.
Imputed depreciation takes this into account, so the depreciation on administration buildings is often included in the price calculation with 0, although a six- or even seven-digit amount is declared in the annual financial statements and in the tax return, which is completely legal.
According to howsmb, imputed depreciation is also of great importance in the state-regulated network industries (e.g. electricity and gas networks). In the energy sector, the imputed costs (imputed depreciation and imputed interest) make up around 50 percent of the total network costs. There are therefore special depreciation tables for these sectors that are used exclusively for regulatory purposes, as is the case, for example, with Annex 1 of the StromNeV.
Special depreciation using the example of a car
In addition to straight-line depreciation, which is based on the useful life, performance-related depreciation (depreciation according to performance units) is also permitted for movable assets, provided this is economically justified (Section 7 (1) sentence 6 EStG). This method is used in particular when the use of economic goods fluctuates significantly over time. The depreciation amount is then calculated as the relationship between proportionate performance and total performance.
The annual depreciation of the above vehicle could also be determined according to the kilometers traveled.
Example: If the specified total performance of the vehicle is 150,000 kilometers, the distance covered in 01 30,000 kilometers, but the mileage in 02 only 5,000 kilometers, then a depreciation rate of 20% (7,200 euros) would apply for the first year and for the second Year of 3.33% (1,198.80 euros).
Special rules for low-value assets (GWG)
For low-value movable assets that are capable of independent use, there are special regulations in accordance with Section 6, Paragraph 2 and Paragraph 2a of the Income Tax Act.
The following table gives you an overview:
|Value limits (in euros)||allowed dismissal||particularities|
|up to 250||Immediate entry as business expenses in full||no entry in the tax asset register necessary|
|over 250 to 800||Immediate entry as business expenses in full||In the case of rudimentary bookkeeping, a special, ongoing directory is required (Section 6 (2), p. 4, 5 EStG)|
|250 to 1,000||Formation of a collective item, even depreciation over 5 years||Entry of the collective item in the tax asset register|
Low-value assets with an AHK up to an amount of 800 euros (excluding sales tax, except for small businesses) can be entered as business expenses immediately . A linear depreciation over the planned useful life is of course also permitted. But that makes sense if tax increases are pending.
Alternatively, in accordance with Section 6 (2a) of the Income Tax Act (EStG), you have the option of creating a collective item for assets with a value between 250 and 1,000 euros and depreciating them linearly over 5 years.
The depreciation table
The official depreciation table is actually a table system. As already explained above, in addition to the table for generally applicable fixed assets (“Depreciation table AV”) there are also numerous industry-specific depreciation lists.
Structure and handling of the tables
The tables are subdivided according to various umbrella terms such as immovable assets, property facilities, operating systems, vehicles, machines, etc.
There are further sub-terms in each section. For example, under the machines you will find individual terms such as drilling machine, milling machine, lathes. To the right of this is the useful life, and in some lists also the percentage for linear depreciation. You have to use these values in the calculation.
Exceptions and validity of the depreciation lists
The depreciation period for movable assets in accordance with Section 7 (1) EStG is based on the normal useful life . The official depreciation tables are therefore not binding, but only serve as a guide. If the usual useful life in your company deviates significantly from the values in the official tables, you have to calculate the depreciation based on the actual values.
The tax office usually has no objection to longer periods of use. However, you have to convincingly justify significantly shorter depreciation times and document them well.
If you use assets that do not appear in the official tables, you can first estimate the useful life. You have to orient yourself on the empirical values of your industry, provided that such information is generally accessible. Otherwise, it is sufficient if you first assume plausible useful lives and adjust this data as soon as empirical values are available for your company.