Take over leasing vehicle privately.
October 16, 2012 | 50,00 EUR | answered by Dr. Yanqiong Bolik
Hello,
I am self-employed and drive a leased company car with over 50% business use (estimated operating assets) invoiced according to the 1% rule.
The lease has a duration of 4 years and will end next year.
I would like to privately take over the vehicle at the residual value at the end of the lease and then use it as part of a down payment for a new leased vehicle (from a different dealer and brand). I would prefer not to sell the vehicle to the next dealer via invoice.
For the down payment on the new vehicle, the booking is clear (private deposit to leasing expense).
What income and expenditure bookings need to be made in the EÜR (non-balance sheet individual entrepreneur) for the private takeover?
Thank you!
Dear inquirer,
Thank you for your inquiry, which I am happy to answer taking into account your input 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 information can change the tax result.
First, you need to determine whether ownership of the leased car has been transferred to you (your company) by the lease agreement. If you have not become the economic owner of the leased car through the lease agreement, the ownership of the leased car remains with the leasing company. What has been allocated to your business assets is the right to use the leased car, allowing you to deduct the leasing costs as business expenses. After the lease agreement expires, the leased car is returned to the leasing company. At that point, you can also privately purchase the car from the leasing company. It is important to note that if you immediately resell the car privately to a second party, the sale gain may be subject to tax under § 23 Abs. 1 Nr. 2 EStG.
If the economic ownership of the leased car has been transferred through the lease agreement, then the car is part of your business assets. The transfer of the car to private assets must be accounted for tax purposes: you must book the fair market value at the time of withdrawal as income and book the remaining book value (possibly plus a final payment) as expenses.
I hope this information has been helpful to you.
If you have any further questions, please feel free to use the follow-up function.
Best regards,
Dr. Yanqiong Bolik
Tax consultant
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 2132 1815
Email: info@zdbz.de
www.steuerberatung.zdbz.de
