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

Income statement

October 26, 2009 | 20,00 EUR | answered by Dipl.BW/SB Ulrich Stiller

Hello,

I have started an online book business as a part-time self-employed entrepreneur. I am bringing about 500 of my own books with me. How do I include this personal investment in the profit and loss statement? Can I list them with estimated used purchase prices? Can I then report this as an expense in the P&L statement? How much of my DSL, PC, and telephone costs can I include?

Best regards,
Sabine Opitz

Dipl.BW/SB Ulrich Stiller

Dear client,

Thank you for your inquiry, which I would like to answer based on your information and in the context of your case as follows:

The 500 books that you also want to sell are considered contributions in kind. Contributions in kind that later result in business income are deductible from the profit, at the value of the books at the time of the contribution. I believe that this value will be roughly equivalent to the purchase price of the books. Therefore, you can also consider an appropriate estimated value as a business expense.

The PC is considered depreciable fixed assets. Acquisition costs that are to be allocated and depreciated over the useful life regardless of the payment.

DSL and telephone expenses are considered business expenses if they are incurred for business purposes. A division may be necessary through a proper estimation. This will need to be checked on a case-by-case basis.

Best regards,

Ulrich Stiller
Tax consultant