Premature termination of the loan affects the prepaid expenses

Few companies in Germany will help to borrow for business investments, or other internal issues a loan. Those who buy machines for example, or the fleet needs to the generally requires a lot of money, especially young companies that often need to raise through debt financing. This usually has only a business plan be submitted, and already, the money is the business plan positively, even the operating account will be credited.

Similarly, if a company has fallen into financial difficulties. Again, the credit is usually the last chance to save the company from insolvency. If the loan be granted, it must also be recorded for accounting purposes, ie, it belongs on the liabilities side of balance sheet records. Since the loan.
the mortgage loan but also caused a series of interest rate charges must also these costs are accounted for properly. These can include the discount and delivery rates, but also the so-called processing fee.


Proper posting of the processing fees for credit

As a loan usually has a term of several years and is usually paid back in different ways, this is often the formation of an active Rechnungsabrenzungsposten necessary. However, this applies especially for the processing fee is not always, when this charge is not, for example in the event of early termination of the contract also repaid. The formation of prepayments is not allowed then what the tax-reducing effect of excluding this regard now. The situation is different, however, if the loan relationship between bank and borrower may only be terminated from the ground and trifftigem theoretishe auszushlieben option is here.

Federal Finance is subject to the judgment processing fee for loans

As with many other topics, it appears that the Federal Finance in recent times also the subject of processing fee for approved loans and explicitly discussed a judgment (Federal Finance judgment of 22 June 2011 / IR 7/10). According to the judges of the Tax Court is once again handling fee to be paid only once in his entire tax deductible deductible amount if the borrower is in turn paid the processing fee previously could not call back again. Indeed, this is often the case when the loan agreement is terminated prematurely for various reasons. Only then, if in advance could not be assumed that the contract will not be maintained over the entire duration of the tax abatement would be instant rebate on the part of the borrower’s possible. If this feature is not given, then the borrower should the processing fee of the loan form an active prepaid expenses, but must distribute the processing fee equal to the duration of the entire loan. In this case, then only partial amounts of the annual processing fee tax deductible.

Prepaid expenses and processing fees for loans

The purpose of forming an active prepaid expenses, is that-as in this example, the paid expenses for a prolonged period, here in loans and credit-properly be recorded so that the annual operating results and balance sheet are consistent. The deferred income still guarantee that all transactions of a financial year are recorded correctly, so that the tax report can be created accurately. Prepaid expenses affect tax-deductible since the expenses are to be regarded as one accounting period due from the relevant tax authorities. These include explicit then the processing charges for loans and credits. These so-called service fees incurred each time an expense is incurred for the coming fiscal period as mentioned in the previous edition. The corresponding values ​​of flow in the so-called profit and loss statement (P & L) with one and then the corresponding business period can be assigned. This results in precisely calculated balance sheet items, in which the individual costs are allocated to the respective accounting periods.