Service cars are particularly popular with entrepreneurs, because the law provides for various possibilities of tax enforcement. As a rule, however, there is an at least minor taxation of the monetary advantage. At the same time, the company car is business assets, which excludes a tax-free sale. With appropriate designs, these disadvantages can be completely avoided!
A positive side effect: Both the 1% method and the logbook are not used when carefully planning the company car design. The entrepreneur therefore also saves the corresponding administrative effort.
1st taxation of the company car: journey book vs. 1% method
If a vehicle is assigned to the necessary or arbitrary operating assets, the costs associated with it are tax deductible as operating expenses. This also applies to the purchase price, which is to be distributed in the context of the depreciation over regularly five years. However, if the company car is used privately, the entrepreneur must tax this private use as a fictitious business income. He has the right to choose between two investigative methods:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.