Declaration on the transfer of private items for business purposes - template with overview

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When running a sole proprietorship, the entrepreneur has the option of transferring private property for the needs of his company. However, in order to do this, it is necessary to demonstrate the purposefulness of transferring private property to the business, as well as the fact that from the moment it is transferred to the company, it will be used only for the purposes of this activity.

Download the free template of the declaration of transferring your own fixed asset in two formats: PDF and DOCX

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The basis for the transfer is most often a declaration on the transfer of private items for business purposes. The declaration must be made in writing - the entrepreneur specifies in it which assets, of what value and when were transferred for the purposes of the activity (included in the fixed assets register).

What items can be donated?

Real estate and movable private property may be transferred for the purposes of the business. However, in order to do so, the donated ingredients must be:

  • owned or jointly owned by the entrepreneur,

  • complete and fit for use on the day of acceptance for use,

  • intended for use in business activities for a period longer than one year.

If the above conditions are met, the transferred property can be classified as fixed assets, and the expenses related to their use as corporate costs.

Statement on the transfer of private items for business purposes

The declaration in which the entrepreneur transfers private property for the purposes of his business should include:

  • date and place of preparation,

  • entrepreneur's data,

  • a declaration of the right to ownership of things (owner / co-owner),

  • determination of the asset (name, type, etc. in the case of e.g. a car, it will be the make, year, identification number) and any other data enabling the entry of the fixed asset into the records and the correct determination of the depreciation rate,

  • the date of transfer of the asset for business purposes,

  • the initial value of the transferred asset,

  • owner's signature.

The initial value of the transferred property is important in the document. It is from this value that the depreciation write-offs will be made. The initial value is, as a rule, the purchase price of a given fixed asset, documented by an invoice, bill or other sales document.

If the entrepreneur has a problem with determining the initial value on the basis of the document (it has been damaged), he is obliged to make the valuation himself. It must take into account the market price of fixed assets of the same type, from December of the year preceding the year of entering into the register of fixed assets, as well as the condition and degree of wear.