One-time depreciation in the spouse's business activity

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As a rule, taxpayers starting business activity and small taxpayers have the right to take advantage of the possibility of making one-off depreciation write-offs. The act, however, provides for certain exclusions in this respect. Read the article and find out when one-time depreciation in a spouse's business can be applied!

One-off depreciation in the spouse's business activity and de minimis aid

Entrepreneurs who start a business in a given tax year or have the status of a small taxpayer may use a one-off depreciation as part of de minimis aid. Information on this relief can be found in Art. 22k paragraph. 7-13 of the PIT Act. In the case of these taxpayers, one-off depreciation is based on the possibility of making one-off depreciation write-offs (on the initial value of fixed assets above PLN 3,500) up to the limit of PLN 50,000. euro of the total value of these write-offs.

The limit cannot be exceeded in a given tax year. This privilege applies only to the acquisition or production of fixed assets in groups 3-8 KŚT, excluding passenger cars (depreciation write-offs can be made in the tax year in which the given fixed assets were entered into the records).

Important!

More information on one-time depreciation can be found in the article: One-time depreciation - relief for de minimis companies.

What will the one-time depreciation in the spouse's business activity look like from the perspective of the PIT Act?

One-time depreciation in a spouse's business - an example

As already mentioned, a one-time depreciation when starting a business can be a great convenience for entrepreneurs. On the other hand, is a one-off depreciation possible in a spouse's business activity? The taxpayer may have doubts as to whether, in the event that the economic activity is also conducted by the spouse, he or she has the right to take advantage of the above-mentioned privilege.

 

The act on personal income tax, in addition to restrictions on groups of fixed assets from which depreciation write-offs may be made, also contains information on exclusions relating to a certain group of taxpayers who cannot benefit from the relief.

Namely, a one-off depreciation may be applied by a taxpayer starting a business activity in a given tax year, with the exception of that contained in Art. 22k paragraph. 11 of the PIT Act.

Art. 22k sec. 11 of the PIT Act:

The provision of paragraph 7 does not apply to a taxpayer commencing economic activity, who in the year of commencement of this activity, as well as in the period of two years, counting from the end of the year preceding the year of its commencement, conducted economic activity independently or as a partner in a company that is not a legal person, or the spouse conducted such activity. of this person, if there was joint property between the spouses at that time.

Therefore, an important issue is the existing (or not) joint property. There are no obstacles that would prevent a taxpayer who, together with his spouse, have established separation of property from using the one-off depreciation.

Attention!

A one-time depreciation in the spouse's business activity under de minimis aid will be excluded when the entrepreneur:

he ran a business independently or as a partner of a company other than a legal person or the activity was carried out by the spouse of that person (provided that there was joint property between the spouses at that time)

  • in the year of starting the business as well
  • in the period of two previous years (counted from the end of the year preceding the year of establishment of the activity.

Example 1.

Mr. Tomasz started running a sole proprietorship in 2017. He bought a truck that he needs to drive it. He would like to take advantage of the one-off depreciation as part of de minimis aid (as a taxpayer starting business activity in a given tax year). However, Mr. Tomasz cannot do it due to the fact that his wife has been running a beauty salon for 9 years (there is joint property between the spouses). Therefore, the conditions listed in Art. 22k paragraph. 11 of the PIT Act, excluding the possibility of using the said privilege.