Practice in the garden shed
October 7, 2014 | 30,00 EUR | answered by Ralph J. Schnaars
Doctor uses garden pavilion without foundation in his own garden (purchase cost 100,000 €) as a practice.
1 What is the useful life to be used for depreciation (building/garden house)?
2 What withdrawal value should be used if the practice is closed after 10 years?
Dear inquirer,
It is very unusual for a garden pavilion worth EUR 100,000 to have no foundation.
If these acquisition costs are undisputed, depreciation can be considered.
To determine the useful life, the construction and weather resistance of the pavilion must be examined.
Perhaps the "structure" will only last another 10 or 12 years and could be depreciated over this "short" period in a tax-efficient manner.
It is recommended to commission an appraiser to determine the value of the pavilion and provide an estimate of the remaining useful life.
Considering the potential depreciation of EUR 100,000, the cost of the appraiser is a worthwhile investment and will be more than offset by tax savings.
The appraiser could also provide an estimate of the residual value of the pavilion after 10 years of use.
The significant advantage of commissioning an appraiser lies in the evidentiary power against the tax office. There are very few cases in which the tax office has not believed a submitted appraisal of the value and useful life of a "property."
If you wish to proceed without an appraiser, assume a useful life of around 12 to 15 years for a wooden house and around 30 to 35 years for a stone house.
However, my recommendation is to commission an appraiser.
I hope I was able to assist you in your considerations.
Kind regards,
Ralph J. Schnaars
STWB Steuerberatungsgesellschaft mbH
Direct contact +49 (0)171 525 20 42
Email mail @ stwb-steuer.de
