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

Early termination of lease agreement due to total loss of vehicle

August 17, 2011 | 25,00 EUR | answered by Matthias Wander

Dear Sir or Madam,

I have the following situation to account for: Early termination of the company's vehicle leasing contract due to total loss. I have received the following invoice from the leasing company:

Remaining balance from the leasing contract 10,487.74
- Insurance payout 7,007.24
- Vehicle sale 1,680.67
Total amount due 1,799.83
plus additional remaining balance due to extended
use of the rental car 17.50
plus fee for early account closure 5.00
plus interest for late payment 10.12
Total remaining balance 1,832.45

The total remaining balance includes 0.00€ processing fees and 19% VAT.
How should each item be recorded according to SKR 03? Please provide the exact account number and description.
There is still a remaining amount of the special payment on account 0980. How should this be recorded?

Thank you. Best regards.

Matthias Wander

Dear inquirer,

Thank you for your inquiry, which I would like to answer based on your information and in the context of your commitment within a first consultation.

The amount you have to pay to the leasing company represents immediately deductible operating expenses.

You can book the transaction as follows:

1,799.83 € Car leasing (904570)
17.50 € Car leasing (904570)
5.00 € Other operating expenses (904900)
10.12 € Interest and similar expenses (902100)
to
Bank (1200)

You will settle the remaining leasing special payment completely at the time of termination (contra account 4570 Car leasing).

I hope I could be of assistance to you.

Yours sincerely,

Wander
Tax consultant