GWG limit for small businesses including private use
December 23, 2021 | 40,00 EUR | answered by Steuerberater Knut Christiansen
Hello,
I need to submit an income tax return (ESt) and profit and loss statement (EÜR) for 2020 as a small business owner. I registered my business in 2020 but have not generated any income, only expenses. The following concerns the profit and loss statement:
I purchased an iPad + accessories for a total of €932.64 (gross, as a small business owner under the small business regulation, not eligible for input tax deduction). I have heard that the maximum amount for low-value assets (GWG) for small business owners is €952 (€800 + VAT). However, in 2020, the VAT paid was only 16% due to Corona, which added up to only €928, just below the value of the expense.
Is this expense still eligible as a low-value asset item?
Additionally, there is a private use of 50/50. Is it correct if I declare the full purchase price as a low-value asset expense and then declare half of the price as income (line 11)?
The business is run through my personal checking account, so the expense for the iPad was paid from personal funds. Do I need to declare this expense as a contribution in the profit and loss statement, as it was technically paid privately?
Thank you very much!
Best regards!
Hello and thank you for using frag-einen.com!
I would like to provide you with the following feedback regarding your questions.
Due to the slight exceedance of the net amount of 800 EUR (in this case: 804 euros), you unfortunately cannot claim the iPad as a low-value asset. It is crucial that the net acquisition cost does not exceed 800 euros. Therefore, you would have to depreciate the iPad over 3 years (pro-rated from the month of acquisition in 2020). If you also use the iPad 50% for private purposes, you would then claim 50% of the depreciation. In this case, it would be advisable to enter only half of the acquisition cost as the basis for calculation. Alternatively, you can enter the full cost in the AVEÜR attachment as the basis for depreciation, and then account for 50% of the annual depreciation (pro-rated in 2020) as a deemed withdrawal in line 20. You would then also enter this amount as a withdrawal in line 125.
You would enter half of the acquisition cost as an additional income in the EÜR attachment (line 126). If you choose the alternative method, you would enter the full acquisition cost as additional income.
I hope I have answered your questions, if not, please feel free to reach out again.
Best regards and Merry Christmas in advance!
Knut Christiansen
Tax advisor
