Ask a tax advisor on the topic of Other questions to tax advisors

Depreciation of used goods

June 6, 2011 | 20,00 EUR | answered by Michael Herrmann

Dear Sir or Madam,
used capital goods are purchased, net 3 x 580,00€ (three identical items) and 1 x net 800,00€. The capital goods are already heavily used and the buyer also estimates that the items will last for another year. They remain in the company for testing. Do these items need to be written off or placed in the collective item account? If so, how should they be booked? (Standard Chart of Accounts)
Thank you and best regards

Michael Herrmann

Dear inquirer,

First of all, thank you very much for your inquiry, which I am happy to answer based on the information provided and in the context of your commitment to an initial consultation. The response is in accordance with the description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.

Assets that are independently usable and serve the business for more than one year are subject to activation. If the intended duration of use is only one year from the outset, they are considered consumables and do not need to be activated.

If the assets are intended for business use for a longer period of time, they must be attributed to the collective item account. The entry then reads, Collective item account account 0485 to Bank (1200) or Supplier account.

I hope that these explanations have provided you with a sufficient overview of the situation in the context of your commitment and this initial consultation and remain

Yours sincerely,

Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax consultant