Renting a caravan
October 6, 2011 | 30,00 EUR | answered by Michael Herrmann
Dear Sir or Madam,
I intend to purchase a (used) caravan and rent it out, apart from using it privately to a small extent.
For this purpose, I would like to register a small business. To what extent is depreciation possible, i.e. is it a flat rate for the whole year or is it only credited for the days rented out? Are the costs of financing deductible? Should the purchase and the corresponding financing of the caravan be done after the business registration for a possible deduction?
Thank you.
Dear inquirer,
First of all, thank you for your inquiry, which I will gladly answer based on the information provided and in the context of your initial consultation. The response is provided according to the description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.
Renting out the caravan generates commercial income for you. All expenses related to the rental activity are considered operating expenses. This includes depreciation for wear and tear and financing costs in full.
The private use of the caravan must be added back to the profit as income at cost. To determine the cost, total expenses are calculated and apportioned based on self-use. It is recommended to calculate this on a daily basis. Therefore, the rental days are compared to the self-use days. The share of costs on self-use days must be added to the income.
The business registration should be done promptly, but is irrelevant for tax purposes. The expenses are tax deductible from the time of acquisition.
I hope this information provides you with a sufficient overview of the situation in the context of your inquiry and this initial consultation.
Yours sincerely,
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax consultant
