Garage door for business vehicles
January 9, 2010 | 15,00 EUR | answered by Matthias Wander
Dear Sir or Madam,
I have the following question:
I am a self-employed engineer and own a company car. This car is parked under a shelter. I would like to purchase a garage door for this shelter/garage.
Can I deduct this garage door (approximately 1500 euros gross) from taxes? - VAT, depreciation (over what period of time?)
Thank you.
Dear inquirer,
Thank you for your inquiry, which I would like to answer based on the information you provided in the context of an initial consultation.
Since the installation of a garage door constitutes an extension/improvement of the shelter, the tax deductibility of the garage door is primarily determined by how the costs of the shelter were or will be taken into account.
If the shelter is located in privately owned property that is not tax-deductible, the costs of the garage door will also not be taken into account.
If the shelter is part of business assets, the costs of the garage door must be depreciated over the remaining useful life of the shelter.
If the shelter is rented and the costs are deductible as business expenses, the costs are immediately deductible, unless the installation of the garage door constitutes a tenant improvement. If a tenant improvement is present, the costs must be depreciated over the useful life. The depreciation period depends on the type of tenant improvement. If a tenant improvement is not present, the costs are immediately deductible as business expenses.
If the garage door is tax-deductible, you can deduct the VAT invoiced as input tax. However, this is only possible if you provide taxable services.
I hope this gives you an initial overview.
Best regards,
Wander
Tax advisor
