Private investment: used car and second-hand laptop
July 25, 2011 | 30,00 EUR | answered by Michael Herrmann
I started my own business on 18.7.11. It is a sole proprietorship offering services for seniors such as shopping, driving, and errand services. A 6-year-old used car is to be transferred into the business assets, and I will be using the mileage log method. An online DAT vehicle valuation revealed the current value to be TEUR 9. The car is currently registered in my name. The company operates as "Senior Service.... Owner: First and Last Name).
My questions:
1.)
How do I document the private contribution of the car to the business assets (is booking the fleet to private sufficient), do I need to register it with the vehicle registration office, is the DAT vehicle valuation sufficient as a value documentation, and can I depreciate the car over 3 years?
2.)
How do I document the private contribution of a used laptop valued at 400 euros? Book it as a low-value asset and depreciate it immediately in the first year?
Thank you for your response!
Dear inquirer,
First of all, thank you for your inquiry, which I would like to answer based on the information provided and the context of your request for initial advice. The response is based on the facts presented. Missing or incorrect information about the actual circumstances can affect the legal outcome.
Question 1) Yes. There is no need to re-register, as you are already the owner. The deposit is recorded as a booking. The valuation of the deposit value should be sensibly documented. The DAT valuation is generally suitable, but may be inaccurate if, for example, accessories are not taken into account. Another option is to derive the residual value as a percentage of the original new value. You have some freedom in the valuation. The only requirement is to determine a realistic result.
Depreciation is possible over 3 years. Since the useful life of the new car has expired after 6 years, the depreciation table rates do not apply. The usual remaining useful life is applicable here.
Question 2) Determining the fair market value of the laptop is more difficult, as there is no market value like for cars. However, since it is only a small amount, the tax office will not apply a strict standard to the valuation. The booking is again recorded as a private deposit.
Starting from 2010, there is an option to immediately depreciate low-value assets up to €410 or spread it over 5 years using the low-value asset pool.
I hope that these explanations have provided you with a sufficient overview of the situation within the scope of your request and this initial consultation.
Sincerely,
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax Advisor
