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

Vehicle in my business assets even though it does not fully belong to me.

November 6, 2013 | 25,00 EUR | answered by Dipl.-Kfm. Frank-Olaf Illiges

Dear Sir or Madam,

My husband and I purchased a car in 2008 (at that time we were not yet married). My husband contributed 44% of the purchase price towards the purchase, as evidenced by bank statements. I am listed on the purchase contract and invoice, the car is registered in my name, and the insurance is also in my name. We only have this one car together.
In 2009, I started my own business and need the car for customer visits.
In the scenario where I would drive more than 50% of the total annual mileage for business purposes, I would theoretically have to include the car in my necessary business assets. Does this apply even if I only own 56% of the car? The car also belongs to my husband, who would not approve of the car being included in my business assets. I would also prefer to continue deducting 0.30€ per kilometer. But more importantly, what would the tax auditor say if I did not include the car in my business assets despite using it for more than 50% for business purposes, and continued to deduct 0.30€ per kilometer driven?

Sincerely,

Dipl.-Kfm. Frank-Olaf Illiges

Dear questioner,

Thank you for your inquiry, which I will gladly answer taking into account your effort 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 change the tax result.

Since you predominantly use the car, the car is attributed to you as the economic owner for tax purposes, regardless of the civil law ownership (§ 39 para. 2 no. 1 Fiscal Code).

Since you use the car for more than 50% for business purposes, the car is necessary operating assets of your company (R 4.2 Income Tax Guidelines). Allocation to your private assets would only be possible if the business use is less than 50%. Only then is the settlement of business-related trips at the flat rate of 0.30 EUR per kilometer possible.

Best regards,
Dipl.-Kfm. Frank-Olaf Illiges
Tax consultant
Am Wieksbach 55
33378 Rheda-Wiedenbrück

Phone: 05242/4055666
Fax: 05242/4055677
e-mail: office@illiges-steuerberatung.de
Website: www.illiges-steuerberatung.de