Closure of business
January 28, 2020 | 40,00 EUR | answered by Steuerberater Bernd Thomas
Hello,
on December 31, 2019, I deregistered my business (trade with electronic parts).
In January 2020, I sold remaining stocks of goods to my customers on Ebay.
How should the revenues for January 2020 be treated? Can I add these revenues to the business income for December 2019 or do these revenues fall into the year 2020?
Best regards,
Manfred Ulrich
Dear Mr. Ulrich,
I am happy to answer your inquiry regarding income taxes based on the information you provided during an initial consultation on frag-einen.com. The response is based on the facts you have provided. Missing or incorrect information can affect the legal outcome.
At the time of closing down your business, you should record the transfer of the remaining inventory to your personal assets at fair market value. This will settle the tax implications of closing down the business.
If you sell the inventory within a year, it will be considered as capital gains and should be reported as other income on your tax return, calculated as the selling price minus the withdrawal value minus any selling expenses. There is a tax-free threshold of 600€, so if the total gains from all capital transactions in the year are below this threshold, they are not taxable.
After one year has passed, any sales are tax-free.
Sincerely,
Bernd Thomas
Tax Consultant
Dipl.-Kaufmann (FH) Bernd Thomas, Tax Consultant, Neustadtswall 85, 28199 Bremen, bernd.thomas@yahoo.de, VAT ID No. DE316948369, Member of the Hanseatic Chamber of Tax Consultants Bremen, Registration No. 111705, Professional liability insurance with R+V Allgemeine Versicherung AG, Mittlerer Pfad 24, 70499 Stuttgart, Insurance sum: 250,000 euros per individual claim; Annual maximum benefit: 1,000,000 euros (for all claims in one insurance year); subject to the professional regulations of the StBerG https://www.gesetze-im-internet.de/stberg/
