Depreciation object
A depreciation object is an investment in property with the aim of causing business expenses or business expenses within the meaning of the Income Tax Act and thus temporarily reducing the taxpayer's taxable income.
sense
In the case of a depreciable object, the depreciation on the fixed assets may well exceed the real wear and tear . The depreciation of the initial investment reduces the taxable income in the initial phase as business expenses (in the case of entrepreneurial activity) or as business expenses (in the case of renting and leasing ) , while the income surpluses are (should) be achieved during the entire term. This defers tax payments and provides a discounting advantage. If the depreciation falls in a phase of life with a high income, but the income subsidies in a phase of life with low income such as B. the retirement age , the investor achieves a progression advantage .
Examples
The cost of acquisition or production costs of property should or could in some cases faster than their real value loss are written off. Currently, the acquisition and production costs for buildings in redevelopment areas can i. S. d. 7h EStG and architectural monuments i. S. d. § 7i EStG can be written off relatively quickly.
Problem
Many investors forget to question the profitability of their investment in the joy of their expected tax savings . For investors with currently low but long-term incomes (such as those starting their careers), depreciation objects are tax-unfavorable. Taxpayers who do not have a taxable income cannot benefit from favorable depreciation schemes.
