Company car used for both business and personal use with a logbook.
March 6, 2011 | 30,00 EUR | answered by Michael Herrmann
Dear Sir or Madam,
I keep a mileage log for my company car as an employee. The costs are settled monthly fictitiously with a final settlement at the end of the year.
Now to my question:
How is the settlement done after the sale of the old car and purchase of a new one?
My question relates to the residual value of the old car. Will the private usage portion be deducted from the new car, at the time of purchase or at the end of the year, or not at all?
Kind regards,
Dear inquirer,
First of all, thank you for your inquiry, which I am happy to answer based on the information provided and in the context of your initial consultation. The response is given according to the circumstances described. Incorrect or missing information about the actual situation can influence the legal outcome.
The calculation of private use remains the same as before, based on an annual value.
The changed circumstances due to the purchase of a new vehicle will affect the basis for assessing the private use portion from the moment the new vehicle is used. If this portion was previously calculated based on a flat rate, it will continue to be calculated this way after the new purchase, but taking into account the different costs of the new vehicle.
The residual value of the old vehicle will impact the previously calculated depreciation costs if it differs from the book value. If the residual value is higher than the book value, it results in a profit that reduces the total costs. Conversely, if the residual value is lower, additional costs arise that increase the private use portion for the old vehicle. This position is recorded and taken into account in the year of sale.
For the new vehicle, an independent calculation of depreciation is carried out, which affects the annual result. There is no offsetting with costs for the old vehicle.
I hope that this information provides you with an adequate overview of the situation in the context of your consultation and initial assessment.
Sincerely,
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax consultant
