Taxation of a vehicle
November 6, 2012 | 30,00 EUR | answered by Dr. Yanqiong Bolik
I have the following problem:
In the last tax return, I was asked to explain immediately how I imagine the taxation of my car, for which I have claimed expenses.
Both for the vehicle tax and for the liability insurance, the vehicle is registered as a truck and is used as such.
Private trips practically do not occur.
The problem is that I do not own a private car because I simply do not need one. If it is necessary, for example to attend a family celebration, I borrow a vehicle.
When shopping needs to be done, I pass by numerous stores throughout the day where I only need to stop.
The last private car purchased for my wife was sometimes not moved at all during the week, and after my wife became seriously ill and is no longer allowed to drive due to her medication, the car was sold.
I am afraid that the tax office will not believe this situation and I cannot prove it conclusively.
Please give me advice on how to best argue with the tax office.
Dear inquirer,
Thank you for your inquiry, which I will gladly answer taking into consideration your efforts and the rules of this platform.
Please note that my explanation is based on the facts presented, and that adding, omitting, changing information, or the ambiguity of the information can alter the tax result.
You should present the facts truthfully. Based on your description, it seems that the truck is predominantly used for business purposes. You should also convey this to the tax office. While the stop for personal purchases is part of personal use, it appears to be of lesser importance. In general, an asset with minor private use (less than 10%) is deemed necessary business assets. The expenses are fully deductible as business expenses. It's best to create a list for the business trips. If the number of kilometers on the list matches the actual kilometers driven, then you have good evidence of almost 100% business use. Additionally, you can provide the tax office with the receipts from the car rental to prove that the personal trips were not made with the truck. In case of inquiries from the tax office, you can also show them the prescriptions for the medications you were prescribed to demonstrate that your wife is unable to drive the truck.
I hope that I was able to assist you.
If there is still any uncertainty, please feel free to use the follow-up function.
Best regards,
Dr. Yanqiong Bolik
Tax consultant
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 2132 1815
Email: info@zdbz.de
www.steuerberatung.zdbz.de
