Green energy trend
At the latest when you consider the effects of global warming, your own photovoltaic system appears to be a worthwhile investment. Consumers’ environmental awareness has increased noticeably in recent years, so that fossil fuels such as carbon monoxide are increasingly being displaced and replaced by renewable energies such as wind energy or solar energy. These make a significant contribution to environmental protection, which people seem to be becoming more and more aware of. According to the Federal Environment Agency, in 2020 alone, 227 million tons of CO2 emissions could be saved through renewable energies. Photovoltaic systems also make their contribution and not only have a positive effect on the climate, but also bring tax benefits. The ” Steuerrechner.de ” portal has summarized the tax advantages that owners of a solar system can take advantage of.
Tax advantages through green energy
Owners of a photovoltaic system have the option of using the energy generated not only for private purposes. Instead, they can register with the tax office as an entrepreneur if they transfer a share of at least ten percent to the public network. For this, the owners of the system must observe tax obligations that apply to other private individuals. However, there are also tax advantages. First of all, however, there is a sales tax, which only does not apply if a self-employed person makes use of the small business regulation. Because even for the purchase of a photovoltaic system, 19 percent sales tax must be paid to the tax office. As a result, the electricity income is also subject to 19 percent sales tax, since a solar system is connected to the public grid.
small business regulation or sales tax
First of all, the owner of the system has to consider whether he applies the small business regulation or pays the sales tax to the tax office. However, if you do not report to the tax office in good time at the beginning, you will automatically be subject to the small business regulation. By applying this regulation, owners are also not entitled to input tax deduction. This means that you cannot have the sales tax paid on the purchase of such systems and the sales tax on maintenance costs reimbursed by the tax office. Therefore, paying the normal taxes is often more attractive for many owners. If the owner opts for an electricity storage system in addition to the system, the sales tax incurred through the purchase of the electricity storage system can also be reimbursed. For this, however, the power storage system must be installed at the same time.
Income tax reduction
The acquisition costs associated with photovoltaic systems can be taken into account for tax purposes through depreciation. The acquisition costs are charged proportionately within the respective useful life. With straight-line depreciation, the asset is depreciated evenly over its useful life of up to 20 years. With special depreciation, you can specify 20 percent of the acquisition costs in the following four years in addition to the straight-line depreciation in the year of purchase. However, if this special depreciation is used, the straight-line depreciation must be recalculated. In addition, up to 55 percent of the investment costs can be included in the income tax return.
Reduction of real estate transfer tax
If the purchased property is already equipped with a system in advance, there are two possible variants. If the solar system is on the roof, there is no real estate transfer tax. However, if the system is installed in the roof, the situation is different. In this case, the system is part of the roof, so it is also subject to real estate transfer tax. If the property is not used by the owner but rented out, these costs can be deducted from the tax as ancillary acquisition costs.
Isabell Tonnius / Editor finanzen.net
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