Tax Structuring Options for Commercial Investors
Mobile-use modules can, with suitable design and tax classification, offer attractive depreciation options.
- Possible classification as a movable asset
- Depreciation models for commercial use
- A case-by-case tax assessment is decisive
Informational only · commercial investors · not tax advice
Why classification as a movable asset is decisive
Modules without a permanent ground connection may be classified for tax purposes as movable fixed assets – unlike traditional buildings. This classification is the basis for the depreciation options described below and depends on the specific design of the individual case.
What matters for the classification
- Construction method and structural design
- Mobility (e.g. transportable construction / chassis)
- Ground connection (no permanent fixed connection)
- Installation concept and intended site use
- Commercial, business use
Possible depreciation models
The following options may apply – given suitable tax classification and where the respective requirements are met. These are possibilities, not a guarantee.
The figures below refer to German tax law.
declining-balance depreciation
Declining-balance depreciation on movable assets (§ 7 EStG) within the statutory requirements.
special depreciation
Special depreciation under § 7g EStG, possible in addition to regular depreciation.
investment deduction (IAB)
Investment deduction amount under § 7g EStG, which can be claimed in advance.
Whether and to what extent these models apply, and how they can be combined, depends on the individual case and the investor's individual tax circumstances.
Requirements and case-by-case assessment
The options mentioned do not apply automatically. The decisive factors are the specific design of the module, the type of use, and the investor's individual tax circumstances. A reliable classification is only possible on a case-by-case basis and through qualified tax advice.
- Specific construction and mobility of the module
- Ground connection and installation concept on site
- Type and extent of commercial use
- Investor's individual tax situation
The tax options mentioned do not apply automatically to every module and every investor. The decisive factors are, in particular, the specific design, mobility, ground connection, installation concept, use, and individual tax requirements. ScaleHousing Systems does not provide tax advice. Please have the specific classification reviewed by a tax advisor before making an investment decision.
Request an Initial Tax Assessment
Are you investing commercially and would like to check whether these structuring options apply to your project? Leave your key details – we will forward your request in a structured way.