Example of special depreciation allowances

for small and medium sized enterprises

In the year of purchase or manufacture of movable assets is special depreciation of 20 %
possible. In the years before is due to the investment allowance a reduction of profit possible.
Liquidity is preserved and investment is abetted.

A company decides in 2009 to buy an excavator on 2/1/2012. The estimated cost of

acquisition is 100.000 Euro (without VAT). The useful life of the excavator is 10
years.
Reduction of profit
2009 -- 2011
Investment allowance
(at maximum)
Purchase 2/1/2012
Investment allowance
2009 -- 2011
Adjusted
cost of acquisition
Special depreciation
20 % of 60,000
Straight-line
depreciation
10 % of 60,000

Reduction of profit
2012

40,000
100,000
40,000
60,000
12,000

6,000

Stand: Juni 2010

www.germantaxes.info - Zentrale Anlaufstelle fr auslndische Investoren