Betriebsvermögen

Betriebsvermögen refers to the assets that a business owns and uses for its operations. It encompasses everything a company uses to generate income, from tangible items like buildings, machinery, and vehicles to intangible assets such as patents and trademarks. The distinction between Betriebsvermögen and Privatvermögen is crucial for tax purposes, as only business assets are eligible for depreciation and other tax deductions related to business operations.

German tax law categorizes Betriebsvermögen into different types. Movable assets, known as bewegliches Betriebsvermögen, include items that can be physically moved, such as office furniture, computers, and tools. Immovable assets, or unbewegliches Betriebsvermögen, refer to real estate like land and buildings owned by the business. Intangible assets, or immaterielle Vermögensgegenstände, represent rights or economic values that lack physical substance. The classification affects how these assets are treated for tax and accounting purposes, including their valuation and depreciation methods. Understanding Betriebsvermögen is fundamental for accurate financial reporting and tax compliance for any business operating in Germany.