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Correction: Activation of the leasing down payment

November 24, 2014 | 25,00 EUR | answered by StB Steffen Becker

Hello, my leasing down payment of 9000€ was activated in 2011 in the income-expenditure account (VAT exempt) and depreciated over the useful life of the car. I would like to correct this for 2012 and subsequent years. What steps do I need to take?

StB Steffen Becker

Dear questioner,

Thank you for your inquiry. I will answer this within the scope of an initial consultation based on the information provided. Missing or incorrect information can affect the legal outcome.

According to § 11 EStG, expenses for the calendar year should be reported in the year they were paid. An exception exists if expenses for a lease with a term of more than 5 years are made; however, I assume that the leasing term is less than 5 years.

If the income tax assessment for 2011 is not subject to review (§ 164 AO) or has not been kept open by an objection, it is final. The only option would be to try to change the assessment using § 173 AO (retrospective disclosure of new facts). However, there is the issue of "gross negligence", i.e. whether the fact of fully deducting the leasing down payment in 2011 was theoretically known or should have been known.

If the income tax return for 2011 was not prepared by a tax professional but by yourself, the tax office may under certain circumstances agree.

If you require further detailed consultation on a fee basis, please contact me at stb-becker@arcor.de.

I hope I could assist you.

Sincerely,
Steffen Becker
Tax advisor