If an entrepreneur sells certain fixed assets (e.g. land and / or buildings), he can transfer any profit that may arise to a so-called reinvestment reserve and thus avoid taxation. However, he must use the profit within four years for the production or acquisition of certain other fixed assets.
If the entrepreneur does not invest, he must dissolve the reserve increasing the profit. In addition, the increases in this case the tax office earnings for each full fiscal year , in which the reserve has passed by 6% of the dissolved reserve amount.
If the entrepreneur invests in certain other fixed assets within the specified period, he can transfer the reserve amount to these assets; ie the balance sheet values of these assets are reduced by the reserve amount . As a result, the depreciation ( deduction for wear and tear - depreciation) for the new asset is reduced.
In December 2005, an entrepreneur sells an undeveloped piece of land (land) from his company's fixed assets, realizing a profit of € 100,000. In the balance sheet as of December 31, 2005, it forms a reinvestment reserve of € 100,000; the profit from the sale of the property will initially remain untaxed.
In 2006 he built a new factory hall on the existing premises, completion on January 2, 2007. The production costs amount to € 200,000, the useful life is indisputably 25 years.
Without making use of the reserve according to § 6b EStG , the annual depreciation amounts to € 8,000 (4% from € 200,000), with use of the § 6b reserve € 4,000 (4% from € 100,000).
The advantage of the profit-reducing reserve is reversed by the lower depreciation over the years. The § 6b reserve only has a "tax deferral effect".
However, the reserve has made the financing of the workshop considerably easier, because without it approx. € 40,000 tax has become due. When financing the new factory hall, this 40,000 € would have been missing or had to be replaced by a bank loan.
Tax effects from tax cuts or tax increases during the 25-year depreciation period are not taken into account here. Solidarity surcharge was also not taken into account. In individual cases, the tax effect depends on the legal form of the company, the personal tax rate and the trade tax rate applicable in the respective municipality .