Value in use

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In general economy, the value in use is the value for the use of things or rights that a specific user or tax law attaches to this use.

General

The concept of value in use has a different content in the various subject areas because its application goals vary. What they all have in common, however, is that it is a cumulative value that results from a right of use during its useful life and is decisive for accounting and / or taxation by the user. For tax purposes, uses or services that do not consist of money ( accommodation , food , goods and other benefits in kind ) are to be assessed at the usual mean prices of the place of consumption ( Section 15 (2 ) BewG ). The counterpart to the value in use is the legal concept of the benefit in use .

Private households

For private households , the value in use plays a role in privately used company cars and property .

  • Company car : According to Section 8 (2 ) EStG , the value in use of the privately used company car is considered a fictitious taxable income . The private use value is the proportion of the total costs of the vehicle that corresponds to the ratio of private trips to the total distance traveled. The following formula therefore applies:
.
According to Section 6 Paragraph 1 No. 4 Sentence 2 EStG, the value in use for private use of a motor vehicle that is used more than 50% for business purposes is 1% of the domestic list price for each calendar month at the time of first registration (plus the costs for Special equipment including sales tax) as an expense ( monetary benefit ).
  • Real estate : The fictitious value in use of a self-used apartment ( condominium , single-family house ), even in an apartment building , has no longer been included in rental and leasing income since 1999 . This means that due to the lack of a source of income, no income-related expenses can be claimed for property used for own residential purposes. In the case of income from agriculture and forestry, on the other hand, the value in use of the apartment in accordance with Section 13 (2) No. 2 EStG is part of this income if the apartment does not exceed the size customary for businesses of the same type and the building or part of the building is a historic monument .
  • Housing advantage in maintenance law : In the case of separated spouses, the value in use corresponds to the rent saved for an appropriate replacement apartment if one spouse uses the property for himself. In the case of value in use, the additional costs that are independent of consumption and that cannot be passed on to a tenant are fully deductible. For the use of the apartment, the other spouse - who moved out of the shared apartment - can demand remuneration ( usage fee ) if this is equitable ( Section 1361b, Paragraph 3, Clause 2 BGB ). If, however, separation maintenance is paid, the value in use of the apartment is usually already taken into account.

In the case of private households, only tax law aspects play a role.

Companies

For companies , the value in use is of considerable importance in accounting . However, the concept of value in use does not come from German commercial law , but from the international accounting standard IFRS ( IAS 36 .6). Thereafter, the value in use ( English value in use ) of an asset to the present value of its estimated future cash flows plus the residual value at the end of useful life , reduced by the costs of disposal . An impairment according to IAS 36 occurs when the book value on the balance sheet date is higher than the market value or the value in use. This IAS impairment corresponds to the unscheduled depreciation according to Section 253 (3) sentence 5 of the German Commercial Code . The value in use is therefore a company-specific value, while the fair value is based on the market value. The value in use is therefore a much more subjective measurement than the fair value.

In addition , cash value calculations based on investment theory , such as those used in company valuation or real estate valuation ( income value method , discounted cash flow method), correspond to the value in use concept, whereby a distinction must be made between objective and subjective valuation parameters.

Web links

Individual evidence

  1. ↑ Bärbel Küch: Income tax law: law, taxes, advice. 2008, p. 71.
  2. ↑ Dieter Steck: Practical Knowledge of Real Estate and Taxes. 2015, p. 133.
  3. ↑ Jens Reinke: Impairment Test according to IAS 36 , 2009, p. 92 ff.
  4. ↑ Wolfgang Ballwieser , Frank legs, Sven Hayn, Volker H. Peemöller, Lothar Schruff, Claus-Peter Weber (eds.): Handbuch IFRS 2011. 2011, p. 400.