Ask a tax advisor on the topic of Profit and loss statement

DISPO after business tasks

September 27, 2014 | 25,00 EUR | answered by StB Steffen Becker

We had a business, and as part of the business operations, the bank had granted us an overdraft facility on our business account instead of a loan. When the business ended, the overdraft still had a negative balance, which we are now repaying privately on a monthly basis. Can these costs be claimed as a loss from the business in the income tax return? If yes, how should this be recorded correctly in the EÜR? Do we create a separate account for the loan with the opening balance, and then record the repayment from where?

StB Steffen Becker

Dear inquirer,

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.

In the repayment of the overdraft loan, it is only the repayment of a loan that has arisen from certain expenses. To the extent that it has arisen from business expenses, these costs are already taken into account in the profit determination. Repayment of the loan itself is not a business expense.
In my opinion, you can deduct the overdraft interest that is still accruing in the respective year as subsequent business expenses ("interest on debt") if the overdraft was incurred through business expenses and is no longer being used for private withdrawals.

I hope this information helps.

Sincerely,
Steffen Becker
Tax advisor