In German tax law, business assets are the value of all active assets of a company minus the values of all debts . In this respect, the tax law concept of business assets corresponds to the economic concept of equity .
However, business assets also refer to the amount of all assets ( economic goods ) that are operationally related according to their type and function. Economic goods that are part of the business assets form the necessary business assets; those that are counted as business assets when exercising a right to choose form the chosen business assets. The business assets do not necessarily correspond to the value added tax corporate assets.
Business asset comparison
German income tax law defines the profit of a business as the difference between the business assets at the end of the business year and the business assets at the end of the previous business year, increased by the value of the withdrawals and reduced by the value of the deposits , Section 4 (1) EStG.
Necessary business assets
This includes items that are used exclusively and directly for internal operational purposes or are at least intended for this. Business assets used in-house are also business assets if they are not shown in the bookkeeping or balance sheet . Economic goods that are not real estate or parts of real estate and that are used by more than 50% for the company's own operations are, in their entirety, necessary business assets. Insofar as a part of the property fulfills these conditions, it is also a necessary business asset (internal use R 4.2 para. 7 EStR ).
Awarded business assets
As part of the income from business operations , assets that are in a certain objective connection with the business and intended or suitable to promote it can be used when determining profits by comparing business assets ( in conjunction with ) and when determining profits net income method (§ 4 para. 3 EStG) are treated as gewillkürtes business assets. With a business use of at least 10%, it is possible to identify these assets as arbitrary business assets when determining profits by comparing business assets. Parts of the property rented to third parties meet these requirements:
- Part of the property is used for external business purposes (e.g. rented to a doctor for his practice)
- Part of the property serves other residential purposes (e.g. rented to Max Mustermann as an apartment)
The income from agriculture and forestry and the income from self-employment provide for lack of trade tax privileged categories of income. For this reason, the conditions for forming gewillkürten operating assets are more closely here.
Special operating assets
Special business assets can only occur in partnerships . The special business assets initially include assets that a co-entrepreneur leaves to the partnership for its operation (SBV I), Paragraph 1 No. 2 Sentence 1 2nd HS EStG . Under civil law, the economic goods belong solely to the shareholder and are not part of the joint ownership of the partnership. In terms of income tax, special business assets are treated as business assets and not as private assets. If the ownership of the co-entrepreneur's share and ownership of the special business assets fall apart as a result of an inheritance, hidden reserves are uncovered and are taxed as the testator's withdrawal profit.
Example: E is a partner in a general partnership and owner of a property. He makes the property available to the OHG as a storage property. When E dies, his daughter becomes the sole heir and inherits E's co-entrepreneurship in the OHG. E has given the property to his partner L as a bequest. With the fulfillment of the legacy, the shareholder and owner position diverge. In terms of income tax law, the property is deemed to have been taken.
The special business assets also include assets that have not been made available to the company directly for use, but are intended to be used to establish or strengthen the shareholder's participation (= SBV II). Examples for SBV II:
- Participation of the partner of a GmbH & Co. KG in the general partner GmbH.
- Participation in the working capital company as part of a business split
The commercial law while speaking in para. 3 sentence 1 HGB from private property as the "other assets of the shareholders", it however fails to define the term. A definition is particularly unnecessary because private assets are the counterpart to business assets. This includes all assets that do not belong to business assets.
It can also be divided into voluntary and necessary private wealth.
- To gewillkürtes private assets is when assets that would objectively likely to encourage the operation, are not subjectively determined to business assets. This includes securities that are assigned to private assets. These can be used both privately and commercially.
- The assets that are not functionally related to the business that can be recognized as such are to be assigned to the necessary private assets . These are primarily economic goods that serve the private life of the entrepreneur or his relatives.
Private assets is also a term outside company law for the ownership of private homes standing assets , such as residential property , household goods , motor vehicles and financial assets ( cash , term deposits ), the only private life is the budget.
- on agriculture and forestry: BFH, judgment of July 19, 2011, BStBl. 2012 II p. 93
- on income from self-employed work: BFH, judgment of August 24, 1989, BStBl. 1990 II p. 17
- R 4.2 para. 2 p. 2 EStR