This shows the total depreciation on immovable assets that you entered in the "Buildings" and "Other immovable assets (e.g. property-equivalent rights)" fields.

However, no depreciation can be claimed on assets in the "Property and land" section.

Here, the total of depreciation on intangible (immaterial) assets is shown.

The total depreciation on movable assets is shown here.

This is the total of special depreciation on movable assets according to sect. 7g, paras. 5 and 6 of the Income Tax Act (EStG).

For the planned acquisition or production of movable fixed assets, you can deduct an investment deduction amount (IDA) of 50% of the expected acquisition or production costs, up to a maximum of 200.000 Euro, from off-balance-sheet profit (sect. 7g paras. 1 to 4 Income Tax Act (EStG)) (see page "Investment deduction amounts").

If the asset for which an investment deduction was formed is acquired or produced within the investment period of 3 years, the following applies:

• The investment deduction amount taken into account for the asset acquired is to be added, thereby increasing profits, off the balance sheet. However, the addition is limited to the amount deducted for the asset in question, up to a maximum of 50% of the acquisition or production costs.
• The actual acquisition or production costs of the asset will be reduced by the amount deducted from the investment (up to 50% of the acquisition or production costs), thereby reducing profits. However, the reduction may not exceed the amount of the investment deduction. This reduction amount must be entered in the books.

Note: The reduction reduces the basis of assessment for further depreciation, for both straight-line depreciation and special depreciation in accordance with sect. 7g paras. 5 to 6 Income Tax Act (EStG). This can lead to assets becoming "low-value" assets for tax purposes if the tax base falls below 800,01 Euro.

The "Second Corona Tax Relief Act" of 29 June 2020 already extended the investment deadline for investment deductions that were created in 2017 and for which the three-year deadline would have expired in 2020 by one year to 31 December 2021 (sect. 52 para. 16 of the Income Tax Act (EStG)).

The investment deadlines in accordance with sect. 7g of the Income Tax Act (EStG) have already been extended in 2022: For investment deductions for which the three-year investment period or the investment period extended to four years expires in 2021, the investment period will be extended by one year to four or five years. This means that if the deduction amount is created in 2017 or 2018, the investment period now only ends on 31 December 2022 (Sect. 52 para. 16 sentence 4 of the Income Tax Act (EStG), amended by the "Act on the Modernisation of Corporate Tax Law").

The investment deadlines in accordance with sect. 7g have recently been extended again: if the three-year or already extended investment deadlines expire in 2022, they will be extended by a further year to four, five or six years (sect. 52 para. 16 sentences 3, 4 of the Income Tax Act (EStG), amended by the "Fourth Corona Tax Assistance Act" dated 19 June 2022).

Depreciable assets of the fixed assets are depreciated over the useful life. Until the full depreciation at the end of its useful life results annually at a net book value. Assets which have already been fully depreciated, but continued to be used in the establishment shall be recorded in the system directory with a memo value of 1 Euro.

If you sell company assets or assume to private assets, enter the net book value. This value is deductible as business expenses. On the other hand you have the sales proceeds, or in private removal the removal value (present value) taxable as business income and submit the page "operating income" in the line "transfer or withdrawal of fixed assets".

The sum of depreciation (depreciation) is transmitted to the determination of the sum of operating expenses to the overview "operating expenses".

Specify non-deductible amounts (AfA and residual book values) to be deducted from the depreciation already specified.

Select Yes if you own property and land belonging to your company assets.

These fixed assets are immovable and non-depreciable and cannot be written off.

Select "yes" if you have one or more motor vehicles in your business assets and wish to provide information about them.

Notes regarding depreciation:

• Year of purchase:The annual depreciation (depreciation for wear and tear) is only deductible proportionately in the year of acquisition. One twelfth of the annual amount is taken into account for each month.
• Year of sale: The proportional depreciation also applies when a vehicle is sold.
• Remaining amount: The remaining amount from the year of acquisition that was not written off in the first year continues to be written off after the regular depreciation period has expired.

In principle, the acquisition or manufacturing costs of assets with a useful life of more than one year must be spread over the years of use, i.e. depreciated. However, an exception applies to low-value assets (GWG).

These are the new tax rules for acquisition or production from 01.01.2018:

(1) GWG with acquisition costs up to 250 Euro
GWG with acquisition or production costs up to 250 Euro (without VAT) can be immediately deducted as operating expenses or depreciated over the service life. The voting right can be exercised individually for each asset (asset-related voting right). There is no special obligation to keep records, e.g. in a list of assets (sect. 6, para. 2a, sentence 4 of the Income Tax Act (EStG)).

(2) GWG with acquisition costs over 250 Euro to 800Euro
GWG with acquisition or production costs of 250,01 Euro to 800 Euro (excluding VAT) can be fully deducted as operating expenses in the year of acquisition, production or contribution or optionally depreciated over the service life. In this case, the GWGs must be listed in a special list of assets, with the date of acquisition, production or contribution and with the acquisition or production costs. The list shall not be required only if that information is apparent from the accounts. As of 2018, assets up to 250 Euro no longer have to be listed in an asset list (sect 6, para. 2, sentences 4 and 5 of the Income Tax Act (EStG)).

(3) GWG with acquisition costs over 250 Euro up to 1.000 Euro
A collective item can be formed for GWG with acquisition or production costs of between 250,01 Euro and 1.000 Euro (excluding VAT), which is to be dissolved over a period of 5 years at a rate of 20% in each case to reduce profits (so-called pool depreciation). The option must be exercised uniformly for all assets of the fiscal year with acquisition costs of more than 250 Euro to 1.000 Euro (fiscal year-related option). Apart from the book-entry of the addition in the collective item, there are no other documentation obligations. This means that you do not have to keep an inventory (sect. 6, para. 2a, sentences 1 and 4 of the Income Tax Act (EStG)).

(4) Assets over 800 Euro must be depreciated according to the general rules. Every year the so-called "Depreciation for wear and tear" is deductible. However, there is still the possibility of forming a so-called collective item for costs up to 1.000 Euro and to dissolve it linearly over 5 years.

In the case of types of surplus income (employment, renting and leasing, other income), low-value assets with acquisition costs of up to 800 Euro (excluding VAT) can be immediately deducted as income-related expenses or alternatively depreciated over their service life.

For the respective limit amount of 800 Euro, 250 Euro or 1.000 Euro, the net value - without VAT - is always decisive. This also applies to small entrepreneurs who make use of the small business regulation according to sect. 19, para. 1 Value Added Tax Act (UStG) and therefore do not pay VAT, as well as to entrepreneurs who carry out turnovers exempt from VAT, e.g. doctors. Nevertheless, they can deduct the costs, including value-added tax, as operating expenses by means of immediate depreciation or collective depreciation (R 9b para. 2 of the Income Tax Regulations (EStR)).

Typical low-value assets include desks, bookcases, computer tables, side tables, desk chairs, dictation machines, calculators, computers, laptops, and the like.

An important prerequisite for immediate depreciation is that the asset can be used independently. This is not the case if it can only be used together with other assets in accordance with its operational purpose. For example, the monitor, printer and scanner can only be used together with the computer. Because of their technical characteristics, these devices are designed to function together with the computer and lose their own usability when separated. Therefore, the acquisition costs are not deductible in one amount, even if they are less than 250 or 800 Euro.

If you transfer a reinvestment reserve in accordance with sect. 6b of the Income Tax Act (EStG) or a reserve for replacement procurement in accordance with sect. 6.6 of the Income Tax Act (EStR) or a subsidy from public funds to the acquisition or production costs of new assets, an immediate write-off is possible, provided that the amount after reduction is less than 150 Euro.

Recording obligations: It is not necessary to keep an investment directory for low-value assets up to 250 Euro. Assets of such low value shall not be charged to the accounts of the enterprises.

Retroactively from 01.01.2021, there is a particularly advantageous new regulation for computers of all kinds and for software: The Federal Ministry of Finance states extremely generously that the normal service life is generally one year. This means that the acquisition costs can now always - regardless of the amount - be deducted in full as income-related expenses or business expenses in the year of acquisition (BMF letter dated 26 February 2021, IV C 3-S 2190/21/10002:013).

Select Yes if you want to specify office equipment that is part of your business assets.

These include computers, office and business equipment. They also include computer programmes which do not contain an instruction structure but only generally known data.

Please enter here low-value assets with acquisition or production costs between 250 Euro and 1.000 Euro without VAT, which are recorded in a collective item.

This collective item is to be distributed evenly over 5 years. The collective depreciation thus amounts to 20% per year in the year of acquisition and in each of the following four years.

This is what you need to know about collective items and collective depreciation:

• The net amount (without VAT) between 250 Euro and 1.000 Euro is decisive for entry in the collective item. This also applies to small entrepreneurs who are not entitled to deduct input tax on the basis of the small entrepreneur regulation pursuant to sect. 19, para. 1 of the VAT Act (UStG), as well as to entrepreneurs who carry out turnover tax-free transactions, for example, doctors (R 9b, para. 2 of the German Income Tax Regulations (EStR)). However, the collective item is depreciated from the gross amount (including VAT). Those entitled to deduct input tax claim VAT as input tax.
• There is no option to depreciate the costs over the normal service life instead of the collective item.
• Each year a new collective item (new account) must be created and written off over 5 years.
• In the first year, collective depreciation also amounts to 20%, even if the asset or individual assets of the collective item are not acquired until the end of the year. The "pro rata temporis " depreciation, as usual, does not apply here.
• Transactions relating to the individual asset have no tax effect. For example, if an individual asset is sold, withdrawn or depreciated, the value of the collective item and the collective depreciation are not affected. This means that the asset withdrawn cannot be cancelled from the pool. For example, if you buy an asset for 800 Euro and sell it again a short time later, you must post the proceeds as income and pay full tax but you may not cancel the asset from the collective item pool.

Select Yes if you have buildings in your business assets.

These assets are fixed assets that can be depreciated.

These include buildings, parts of buildings, outdoor facilities, courtyard paving, parking lots, streets, certain tenant facilities.

Note: Other expenses for buildings held as business assets, for example, expenses for maintenance and repairs, property tax, insurance premiums and current operating costs, should be entered in the section "Operating expenses > Occupancy costs and other property expenses".

Select Yes if you want to provide information on intangible assets of the business assets.

Intangible (immaterial) assets include rights, legal values and other benefits. Tax law does not define intangible assets. Intangible assets are

• Rights, possibilities, special advantages for the company,
• for the acquisition of which expenses were incurred,
• which will benefit the operation beyond the balance sheet date,
• that are subject to a special delimitation and evaluation, and
• for which the acquirer of the business would charge a special fee.

Intangible assets may be depreciable or not depreciable:

• Depreciable and therefore subject to write-off may only be certain assets and only if they have been acquired in return for payment, for example,
• goodwill of a company or a doctor's office acquired against payment,
• trademarks (brands), rights of use, software acquired against payment.

Such assets can only be depreciated on a straight-line basis. In addition, exceptional depreciation may be considered. Internally created or acquired intangible assets may not be capitalised and therefore not amortised. Rather, the expenses incurred are immediately deductible as business expenses.

• Not depreciable are, for example,

• transport concessions acquired against payment,
• domain name acquired against payment,
• for doctors: admission to the statutory health insurance registered doctors acquired against payment.

The acquisition costs cannot be depreciated but can be deducted as business expenses within the scope of the net income method only at the time of their sale or withdrawal.

Select Yes if you want to provide information on other land and property or property-equivalent rights in your business assets.

Select Yes if certain parts of a building or a certain part of a building are or will be used as a home office.

Select Yes if you want to specify other movable assets that are part of your business assets.

Movable assets are, for example, machines, mechanical systems, operating equipment. They also include computer programmes which do not contain an instruction structure but only generally known data.

Note: In the year of purchase, the calculated annual depreciation can only be deducted proportionately, and for each month exactly with one-twelfth. The same applies if the asset is sold. You deduct the remaining amount from the acquisition year after the regular depreciation period.

Select Yes if you want to specify information about collective items. These are low-value assets with acquisition or production costs of more than 250 Euro up to 1.000 Euro without VAT received, which are recorded as a collective item.

Collective items must be spread evenly over 5 years. The collective depreciation, therefore, amounts to 20% per year in the year of acquisition and in the following four years.

You need to know the following about collective items and collective depreciation:

• The net amount (without VAT) between 250,01 Euro and 1.000 Euro is decisive for entry in the collective item. This also applies to small entrepreneurs who are not entitled to deduct input tax on the basis of the small entrepreneur regulation pursuant to sect. 19, para. 1 of the VAT Act (UStG), as well as to entrepreneurs who carry out turnover tax-free transactions, for example, doctors (R 9b, para. 2 of the German Income Tax Regulations (EStR)). However, the collective item is depreciated from the gross amount (including VAT). Those entitled to deduct input tax claim VAT as input tax.
• There is no option to depreciate the costs over the normal service life instead of the collective item.
• Each year a new collective item (new account) must be created and written off over 5 years.
• In the first year, collective depreciation also amounts to 20%, even if the asset or individual assets of the collective item are not acquired until the end of the year. The "pro rata temporis " depreciation, as usual, does not apply here.
• Transactions relating to the individual asset have no tax effect. For example, if an individual asset is sold, withdrawn or depreciated, the value of the collective item and the collective depreciation are not affected. This means that the asset withdrawn cannot be cancelled from the pool. For example, if you buy an asset for 800 Euro and sell it again a short time later, you must post the proceeds as income and pay full tax but you may not cancel the asset from the collective item pool.

SteuerGo: The service life of individual assets is irrelevant. Collective depreciation over 5 years is, therefore,

• Unfavourable for assets with a shorter service life e.g. computers (3 years would be normal) and
• Favourable for assets with a longer service life e.g. copiers (7 years would be normal) or furniture (13 years would be normal).

Select Yes if you want to provide information on shares in companies.

Depreciable fixed assets are depreciated over their useful life. A residual book value results each year until full depreciation at the end of the useful life. Assets that are already fully depreciated but continue to be used in the business shall be recorded in the fixed assets register with a memo value of 1 Euro.

If you sell business assets or transfer them to private assets, enter the residual book value here. This value is deductible as business expenses. On the other hand, you must pay tax on the proceeds of the sale or, in the case of private withdrawal, on the withdrawal value (partial value) as business income and enter it on the "Operating income" page in the line "Sale or withdrawal of fixed assets".

Select Yes if you want to give information on the share of property that accounts for a home office.

Select Yes if you want to enter information about exceptional current assets. Disposals from current assets are specified together with goods, raw materials and auxiliary materials in line 25 of the Form EÜR (net income method (Einnahmenüberschussrechnung)).

Select Yes if you want to provide information on financial assets.

Depreciable fixed assets are depreciated over their service life. Until they are fully depreciated at the end of the service life, they have a residual book value each year. Assets which have already been fully depreciated but which are still in use in the company must be entered in the list of assets with a memo value of 1 Euro.

If you sell business assets or transfer them to private assets, enter the residual book value here. This value can be deducted as business expenses. On the other hand, you must tax the sales proceeds or, in the case of private withdrawals, the withdrawal value (partial value) as operating income and enter it in the "Sale or withdrawal of fixed assets" line on the "Operating income" page.

Note: The residual book value results from the acquisition or production costs or the capital contribution value, reduced by the depreciation and special depreciation deducted until the employee leaves the company.