The special depreciation in accordance with 7g para. 5 Income Tax Act (EStG) can be claimed for up to 20% of acquisition/production costs - distributed across five years (from the year of acquisition/production). After this (from the start of the 6th year), the residual value is set off in a linear manner, spread throughout the remaining years in which the movable asset is used

• In the case of taxpayers subject to the net income method, the profit may not exceed 100.000 Euro - excluding the investment deduction amount. This applies primarily to freelancers, who are allowed to calculate their profits by means of a net income method (EÜR), irrespective of turnover and profit thresholds, while tradespeople with a profit of 60.000 Euro or more are required to keep accounts. In these cases, the business assets are decisive.
• In the case of farmers and foresters, the economic value (excluding housing value) or, in the new federal states, the equivalent economic value may not be higher than 125.000 Euro.
• The special depreciation can be claimed without an investment deduction amount having been formed and deducted beforehand in accordance with section 7g para.1 to 4 of the Income Tax Act (EStG).
• The special depreciation can be used not only for newly acquired assets, but also for assets aquired second hand.
• Special depreciation is only granted if the asset is used exclusively or almost exclusively, i.e. at least 90%, for business purposes at a company in Germany, during the year of acquisition/production and the following business year.

An asset disposal is the premature retirement of an asset, before its useful life has expired.

There are basically three different reasons for an asset disposal:

• Asset disposal through sale,
• Asset disposal without sale (for example, theft, scrapping, loss),
• Asset disposal by private withdrawal.

Asset acquisition is defined as an asset that cannot be used independently (e.g. accessories and extensions to an existing asset) that has been acquired as an asset.

Enter here the amount of the acquisition costs.

Acquisition costs are all the expenses you have incurred to acquire an item for your business.

Indicate here a meaningful designation for the asset.

Specify the book value at the beginning of the profit calculation period.

The book value at the end of the profit calculation period is the book value at the beginning of the profit calculation period minus asset disposals and, if applicable, depreciation amounts plus asset acquisitions.

Enter here the acquisition / production date for the asset.

Depreciable assets must always be written off i.e. the acquisition or production costs must be distributed over the normal useful life. The so-called deduction for wear and tear (AfA) is deductible each year.