Deduct leasing costs
June 4, 2013 | 30,00 EUR | answered by Dipl.-Kfm. Frank-Olaf Illiges
With my GbR, I earn an average of 40,000 euros annually. I pay approximately 9,500 euros in income tax each year.
I now want to lease a car.
Leasing costs are around 300 euros per month gross, with insurance costing about 1,100 euros annually.
What and how much of this can I claim as a tax deduction?
50 percent of the vehicle's use is for business purposes.
Dear inquirer,
Thank you for your inquiry, which I will gladly 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 the information can change the tax result.
If you use the leased car primarily for business purposes (more than 50%), then the leased vehicle will be treated as a company car. You can then claim all expenses related to the vehicle as business expenses (§ 4 Abs. 4 Income Tax Act (EStG)). This includes not only the leasing payments and the leasing down payment, but also the car insurance, car tax, repair costs, and fuel.
Using the car for private trips constitutes a private use withdrawal, which is subject to income tax as business income. You can determine the value of the private use portion either through the so-called 1% method or specifically through a proper mileage log.
Sincerely,
Dipl.-Kfm. Frank-Olaf Illiges
Tax Advisor
Am Wieksbach 55
33378 Rheda-Wiedenbrück
Phone: 05242/4055666
Fax: 05242/4055677
Email: office@illiges-steuerberatung.de
Website: www.illiges-steuerberatung.de
