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One-time depreciation of a motorcycle - is it possible?

Fixed assets may be assets that meet the definition specified by the act, including they are owned or jointly owned by the taxpayer, are complete and fit for use, and their expected useful life for business purposes exceeds 1 year. The cost of a fixed asset is spread over time through depreciation - their value depends on the type of FA, method and rate of depreciation. Under certain conditions, FA can be depreciated once, without the need to write down the cost for subsequent years, but such law does not apply to all fixed assets. The article focuses on motorcycle depreciation - is one-time depreciation of a motorcycle possible? We explain.

One-off depreciation of fixed assets

If the initial value of a fixed asset does not exceed PLN 3,500 net in the case of active VAT payers or gross in the case of tax-exempt taxpayers, it is possible to use a one-time depreciation without the need for additional formalities.

Then, the depreciation write-off is posted in costs in the month in which the fixed asset is brought into use. However, when the value of a fixed asset exceeds PLN 3,500, the matter is not that simple.

One-off depreciation as part of de minimis aid

If the initial value of TA exceeds PLN 3,500, taxpayers still have the right to apply a one-time depreciation, but already as part of de minimis aid. An entrepreneur wishing to obtain de minimis aid should first meet certain guidelines. First, the aid may be used by an entity that started running a business in a given tax year or by an entity that describes itself as a small taxpayer.

Important!

A small taxpayer is an entrepreneur whose gross sales revenues in the previous tax year did not exceed the PLN equivalent of EUR 1,200,000.

Importantly, not every fixed asset can be depreciated once under de minimis aid. Such depreciation in accordance with Art. 22k paragraph. 7 of the PIT Act can be applied from the initial value of fixed assets included in group 3-8 of the Classification (excluding passenger cars) and intangible assets.

One-off de minimis depreciation may be applied in the tax year in which the ŚT was entered into the records, up to the amount not exceeding in the tax year the equivalent of EUR 50,000 of the total value of these depreciation write-offs.

One-off depreciation under de minimis aid therefore applies to fixed assets belonging to the following groups of KŚT:

Groups 3 BOILERS AND ENERGY MACHINES,
Groups 4 MACHINES, EQUIPMENT AND APPLIANCES OF GENERAL PURPOSE,
Groups 5 SPECIALIST MACHINES, DEVICES AND EQUIPMENT,
Groups 6 TECHNICAL EQUIPMENT,
Groups 7 MEANS OF TRANSPORT (excluding passenger cars),
Groups 8 TOOLS, INSTRUMENTS, MOBILE AND EQUIPMENT, NOT ELSEWHERE CLASSIFIED.

As can be seen in the case of passenger cars, if their value exceeds PLN 3,500, it is not possible to apply a one-off depreciation from the de minimis aid.

Attention!

There is no obligatory obligation to report to the office the fact of using de minimis aid. However, applying for a certificate is useful when in subsequent years the entrepreneur would like to use, for example, a subsidy or other form of de minimis aid for the purpose of calculating whether the limit has not been exceeded.

As a rule, it cannot obtain de minimis support, the sum of which in the three fiscal years would exceed EUR 200,000 (for entities from the road haulage sector, this value may not exceed EUR 100,000). In this case, the years include the year in which the entrepreneur applies for granting him funds from the aid, and the two previous tax years.

Is a motorcycle a passenger car?

Due to the radical change in regulations on April 1, 2014 related to the settlement of cars in the company, the definition of a passenger car has changed. This definition is included in the PIT Act and the Road Traffic Act.

Pursuant to Art. 5a point 19a of the PIT Act whenever the Act mentions:

passenger car - this means a motor vehicle within the meaning of road traffic regulations with a maximum permissible weight not exceeding 3.5 tons, designed to carry no more than 9 people, including the driver, with the exception of:

a motor vehicle with one row of seats separated from the part intended for the carriage of goods by a wall or a permanent partition:

classified on the basis of road traffic regulations into the following subtype: multi-purpose, van or
with an open part intended for the transport of loads,

a motor vehicle with a driver's cabin with one row of seats and a body intended for the carriage of loads as structurally separate elements of the vehicle,
a special vehicle, if the documents issued in accordance with the road traffic regulations show that the vehicle is a special vehicle, and if the conditions contained in separate regulations, specified for the following purposes, are also met:

electric / welding aggregate,
for drilling work,
excavator, backhoe-bulldozer,
charger,
a hoist for maintenance and assembly works,
truck crane,

a motor vehicle specified in the regulations issued on the basis of art. 86a paragraph 16 of the Value Added Tax Act

On the other hand, according to the road traffic regulations, a motor vehicle is a motor vehicle, the construction of which allows driving at a speed exceeding 25 km / h, this term does not include a farm tractor.

As a result, within the meaning of the PIT regulations, a motorcycle is a passenger car, which means that depreciation write-offs from the initial value of motorcycles are made on the same principles as in the case of passenger cars.

One-time depreciation of a motorcycle

If the value of the motorcycle does not exceed PLN 3,500, it can be depreciated once.

However, if the value of a motorcycle exceeds PLN 3,500, due to the fact that it falls within the definition of a passenger car, it is not subject to one-off depreciation under the de minimis aid. Pursuant to the PIT Act, passenger vehicles are excluded from the FA catalog, to which one-time depreciation from de minimis aid can be applied. This position was confirmed by the individual interpretation of the Minister of Finance of June 15, 2016, No. DD9.8220.2.197.2016. KZU changing the individual interpretation of the Director of the Tax Chamber in Katowice of November 18, 2015, No. IBPB-1-1 / 4511-551 / 15 / WRz.