Transfer of a fixed asset between the spouses' companies
Spouses who run separate economic activities have the option of transferring fixed assets from the company of one spouse to another. How then to account for the transfer of the fixed asset? The procedure is not complicated - a given fixed asset should be removed from the register of fixed assets in the company of the transferring spouse and entered into the register in the company of the transferring spouse. But what about the initial value of such fixed assets? What should be done when the fixed asset has not been fully depreciated? What if it has been fully depreciated? Read the article and find out how, according to the regulations, the transfer of a fixed asset between the spouses' companies should look like!
Transfer of a fixed asset between spouses - partially depreciated asset
In a situation where a fixed asset is transferred between the companies of the spouses, which is not fully depreciated, the law does not directly say how to proceed in such a situation. Namely, the Personal Income Tax Act does not define the rules for the transfer of ownership of fixed assets between spouses, nor for the continuation of depreciation in a situation where the acquired fixed asset was used and depreciated in the company of the transferring spouse.
As long as the regulations do not say anything on this subject, it is different with the tax authorities. According to their position, if a spouse takes over a fixed asset from a spouse who used it and depreciated it in his business activities before its transfer, the initial value of this fixed asset should be determined on the basis of the initial value included in the transferring spouse's fixed assets register.
If the value of a fixed asset has not been fully depreciated in the company of the transferring spouse, depreciation should be continued in the company of the spouse accepting the fixed asset, that is, the current write-offs and the depreciation method should be taken into account.
This position was adopted by the Director of the Tax Chamber in Bydgoszcz in the individual interpretation no. ITPB1 / 415-284 / 11 / RR of 13.06.2011:
“In the event that one of the spouses takes over to his business an asset used earlier (depreciated) in the spouse's business, he sets the initial value of fixed assets and intangible assets at the amount of the initial value specified in the register (list) of the spouse who has used this asset in his business so far. economic activity, similarly to the change of activity performed independently by one of the spouses to activity performed independently by the other spouse. The spouse taking over the asset used so far in the spouse's business activity should - if the initial value of the fixed asset has not yet been fully depreciated - make depreciation write-offs taking into account the current amount of the write-offs and continue the depreciation method adopted by the spouse using this asset so far. "
Transfer of a fixed asset between spouses - fully depreciated asset
So what if the fixed asset transferred from the spouse's company to the spouse's company has been fully depreciated? Of course, it should be entered into the register of fixed assets, but not depreciated and no depreciation write-offs should be posted. Only expenses related to the operation of a given fixed asset may be classified as tax deductible costs.
Transfer of a fixed asset between spouses in the wfirma.pl system
In order to enter in the wfirma.pl system, a fixed asset transferred from the spouse's company, go to the tab RECORDS »ASSET» FIXED ASSETS FILE »ADD ENTRY and enter the required data.
Then go to the ADVANCED tab and check the box FIXED ASSET TRANSFER FROM ANOTHER COMPANY. Then, an additional window will be generated, in which you should enter the value of the current redemption.
After saving, depreciation will continue in the system taking into account the depreciation value.