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

Lease a car

December 5, 2012 | 25,00 EUR | answered by Michael Herrmann

Dear Sir or Madam,

I have started a freelance business with a partner as a GbR. Now I would like to lease a car. Should I lease it privately or under the GbR? What would be the advantage in this case?

Kind regards,
Oliver Fassoth

Michael Herrmann

Dear inquirer,

First of all, thank you very much for your inquiry, which I would be happy to answer based on the information provided and considering your involvement in an initial consultation. The response is based on the description of the situation. Missing or incorrect information about the actual circumstances can influence the legal outcome.

The tax deductibility of vehicle costs is not affected by the form of financing. In leasing, the lease payments are taken into account as costs, while in a purchase, the depreciation of the purchase price over a period of 6 years and any credit interest after the incurrence are considered. The tax result is not affected by whether the GbR or a co-partner acquires or permits the vehicle.

If the GbR conducts its profit determination through a cash basis accounting method, i.e. without balance sheet accounting, the vehicle is only considered business property if the business use exceeds 50%. Otherwise, the vehicle belongs to your personal assets. In this case, the costs are only deductable as a lump sum of 0.30€ per kilometer. It is not advisable to register the vehicle under the GbR in this scenario.

If you consider the vehicle as your own property and the costs are not meant to be covered by the GbR or the co-shareholder, it is also not advisable to lease the vehicle through the GbR. Instead, you can record it as special business property in a separate balance sheet or profit and loss statement that only concerns you personally. In this way, the deductible expenses will reduce your personal share of profits.

I hope that these explanations have provided you with a sufficient overview of the situation within the scope of your involvement and this initial consultation.

Kind regards,

Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax Consultant