The entrepreneur strives to minimize the tax liability, and therefore try to invest as much property as possible in the company’s business assets. In the case of a car, this entrepreneur is offered to use their own car for business, without being included in commercial property. What is appropriate?
Let’s first look at the usual variant, which is chosen by a large group of entrepreneurs – driving and placing a car in commercial property.
When using a car inserted into a commercial property, taxable data (the law can be found in paragraph 24, paragraph 2, letter k, Kona on income taxes) is all data related to business trips. This type of marriage is relatively wide, so let’s change the group of the most numerous.
- Expenditure on fuel in the proof (according to the proof of purchase of fuel)
- Depreciation of the vehicle (note: cars belong to group 1a and are depreciated over three years)
- All operating costs (repair costs, gossip, debt stamp, accident insurance, compulsory handling, winter tire wear, etc.)
Here it is necessary to change one essential thing – the entrepreneur has to prove to the tax administrator in case of control whether driving with a vehicle vlun for business or combining business with private rides. This proves the stock of kept driving books. If the vehicle is driven only for business purposes, then the stated data can be considered in absolute terms as tax. In other cases (combined driving) it is necessary to determine the ratio between business and private rides (eg 60:40). In the event of such a ratio, the taxable person must cut the data accordingly.
As I changed in, the car is depreciated for three years. After this period and 100% tax deduction of the car, many entrepreneurs choose to sell the car and replace it with a new type. In the case of entrepreneurs, however, it is a big unsuitable fact that the income from the sale of a car included in commercial property is a part of the income from business according to paragraph 7 and at the same time increase the recovery base for the calculation of social and health insurance premiums. Against these contracts, the entrepreneur may only apply short depreciation during the depreciation period. These are therefore the basic parameters of projecting a vehicle placed in commercial property for tax purposes. And how is it in the case of a vehicle not engaged?
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Vehicle not included: day of depreciation, day of repairs – only depreciation and fuel
The vehicle not included in the commercial property is characterized by the fact that it is not purchased by the entrepreneur at the IC, or as a citizen. The team does not include it in commercial property and does not even mention it.
It is clear from this that he cannot depreciate the car or apply the other typical data given in the case of a car registered in OM. So what does such an entrepreneur actually do from a tax point of view if he uses a private car for business people? As a tax, such an entrepreneur applies the costs in the amount of the basic payment rate and according to the payment the expenditure for the consumed fuel.
The basic reimbursement rate is popularly called the depreciation of one’s own vehicle and it amounts to 3.80 K per kilometer for business people.
Reimbursement for fuel means the amount determined in relation to the number of kilometers driven, the purchase price of fuel and on the arithmetic mean of all consumption data stated by the manufacturer or importer in the technical order.
Now we offer to compare the above variants and make a decision on what is actually appropriate. It is not easy to get rid of the trial if the case falls from the case. So let’s try to indicate in the following table the key parameters that each fee should take into account before the actual investment.
|Zaazen v OM||Nezaazen v OM|
|Large number of kilometers traveled for business people||–||+|
|High price car price||+||–|
|High under private rides||–||+|
|Repair tracks, gossip, equipped||+||–|
|Probable sale immediately after the end of the depreciation period||–||+ (note: customs revenue from sales will be exempt from taxes)|
Before deciding how to drive a car, the entrepreneur should answer at least these questions. Of course, at the moment of driving the car, it is difficult to answer the question of how it will be between private and business trips or, for example, how the car will fail, or how much the entrepreneur will have to spend on repairs. Pesto, it pays to pay a little before buying your own vehicle.