Tax deductible costs for the company car

What you need:

• tax consultant
• Business registration

Correctly state the cost of the company vehicle

• First of all you need one Business register, because you can only have one company car with regard to the costs claim for tax if you run a business.

• At the trade office you can obtain the necessary documents and have an entry made, whereby you must of course describe your trade in order to be able to deduct the costs for the company car.

• An entry with the IHK is necessary, because you will also be registered there as an independent trader.

• It is also important to work with your tax advisor to see when the expenses for the company car can best be classified. The costs cannot exceed your income.

• When registering the company car, you must have your vehicleinsurance inform if you want to use a car that was previously used for private purposes now for business purposes. These are then different tariffs. However, you can then also deduct the costs.
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 You can deduct this from tax on the company car

• First of all, you can make the purchase price for the company car tax-deductible, as the costs reduce your income.

• You can deduct all other costs such as repairs, car insurance and petrol. For this it is necessary that you all bills and receipts in a safe place and present to the tax advisor.

• The company vehicle can also be included in the company's assets and gradually written off. How the costs are best distributed should be discussed with the tax advisor.

• It can make sense to keep a logbook, because a certain proportion of private journeys is taken into account even if the vehicle is used predominantly for business purposes. If you do not have any costs for private trips with the company car and can prove this with the logbook, you have the option of being able to deduct the costs fully from tax.