Building depreciation: how to calculate and taxation

The need to calculate depreciation of buildings

Buildings, as part of the assets of the enterprise, are used to support the production process and for administrative (management) purposes. Over the years, they gradually wear out, which is natural. Buildings lose their original properties and characteristics. As the technical condition deteriorates, their value decreases. When property is first entered into accounting records, it has an initial value. It is initially determined by the purchase price and the costs of putting it into operation.

Along with normal wear and tear, the value is subject to downward adjustment. That is why depreciation is calculated as a gradual attribution of the cost of fixed assets to the cost of goods manufactured, services provided or work performed.

Rules for calculating depreciation on real estate objects

Date of publication: 05/07/2014 12:32 (archive) From January 1, 2013, the rules for calculating depreciation on real estate assets have changed.

Indeed, these changes were made on the basis of Article 2 of the Federal Law

“On amendments to parts one and two of the Tax Code of the Russian Federation and certain legislative acts of the Russian Federation”

(hereinafter referred to as Law No. 206-FZ).

We consider it necessary to draw taxpayers’ attention to these changes and help them understand them in detail. Let us recall that in accordance with (hereinafter referred to as the Tax Code of the Russian Federation), depreciable, for the purposes of Ch. 25 of the Tax Code of the Russian Federation recognizes not only property, but also the results of intellectual activity, as well as other objects of intellectual property.

Three essential features are important.

Firstly, the taxpayer must have ownership rights to the listed items (unless otherwise provided by Chapter 25 of the Tax Code of the Russian Federation).

Depreciation in accounting: basics

The starting element in the methodology for calculating depreciation is the useful life (LPI) of real estate assets. It is installed following the data of the “Classification of fixed assets included in depreciation groups.” It operates in accordance with government decree in 2002. It is also necessary to take into account the changes made on 07/07/2016. Their action began in January of this year.

The SPI is the period during which the building is able to serve productively as an asset and contribute to the accomplishment of the taxpayer's objectives.

The enterprise determines it itself, based on the date the building was put into operation and information about the OS classification: (click to expand)

The buildings belong to the 4th and 5th, as well as to 7-10 groups. The enterprise independently determines which of them its real estate should be classified as. The characteristics of each set of buildings provide a clue.

Depreciation of real estate - how to get started?

When an organization buys real estate, subject to mandatory state registration, and accepts it for accounting as a fixed asset, the issue of depreciation calculation arises. Indeed, let's try to figure out when real estate depreciation begins: in the month when documents for state registration of real estate rights are just submitted, or starting from the next month.

It is clear that the property costs much more than 40,000 rubles; this is one of the criteria for classifying a fixed asset as depreciable property. Three others must also be fulfilled: use to generate income, useful life of more than 12 months and must be owned by the taxpayer (clause 1 of Article 256 of the Tax Code of the Russian Federation).

The initial cost of a fixed asset, calculated in accordance with paragraph 1 of Article 257 of the Tax Code of the Russian Federation, is accepted as income tax expenses through the depreciation mechanism. At the same time, fixed assets are divided into depreciation groups depending on their useful lives (clause 1 of Article 258 of the Tax Code of the Russian Federation).

Buildings, as a rule, are included in 8-10 depreciation groups, and for these groups the method of calculating depreciation can only be linear, regardless of which method is enshrined in the company’s accounting policy for all other depreciable property (clause 3 of Article 259 of the Tax Code of the Russian Federation). With this method, depreciation must be calculated for each fixed asset separately (clause 2 of Article 259 of the Tax Code of the Russian Federation).

Depreciation should be calculated after commissioning from the first day of the next month. As for fixed assets, the ownership of which must be registered, paragraph 11 of Article 258 of the Tax Code of the Russian Federation speaks about them separately. They are included in the depreciation group, starting from the moment the papers are submitted for registration, and the document confirming this will be a receipt listing the submitted documents and indicating the date and time of submission (letter of the Ministry of Finance of Russia No. 03-03-06/1/116 dated March 4, 2011, letter of the Federal Tax Service of Russia for Moscow No. 16-15/137360.2 dated December 28, 2009).

As can be seen from the above norms, there is no clear answer as to when to start calculating depreciation of real estate, the ownership of which must be registered with government agencies. There are currently three options for resolving this issue:

- the position of the tax authorities and the Ministry of Finance of Russia: depreciation of real estate begins from the next month after commissioning, but not earlier than documents for registration of ownership are submitted (letter of the Ministry of Finance of the Russian Federation No. 03-03-06/1/492 dated July 29, 2010 ., dated December 7, 2009 No. 03-03-06/2/231, letter of the Federal Tax Service of the Russian Federation for Moscow No. 16-15/137360.2 dated December 28, 2009). This position is also supported by some courts (resolution of the Federal Antimonopoly Service of the Volga District No. F06-3947/11 dated May 31, 2011 in case No. A06-4719/2010).

-position of the Ministry of Finance of the Russian Federation: from the first day of the next month after commissioning, but not earlier than the first day of the month following the receipt of the receipt for the submission of documents for state registration (letter of the Ministry of Finance of Russia No. 03-03-06/1/96 dated 14.02 .2011, No. 03-03-06/1/823 dated December 14, 2011, No. 03-03-06/1/598 dated September 20, 2010). This opinion is expressed by financiers later than the above.

— the position of the majority of arbitration courts: the moment of accrual of depreciation is not related to the proof of submission of documents for registration of the right to property. What is more important is the moment of putting real estate into operation. This means that depreciation must begin from the first day of the next month after commissioning (resolution of the 11th Arbitration Court of Appeal No. 11AP-1039/12 dated March 1, 2012, 9th Arbitration Court of Appeal No. 09AP-2654/12 dated 03/21/2012, FAS Central District in case No. A35-10007/2009 dated 11/16/2010, FAS Volga-Vyatka District No. F01-408/2011 dated 03/03/2011, FAS North-Western District No. A42- 2083/2008 dated May 13, 2009).

The latter opinion was supported by the Supreme Arbitration Court of the Russian Federation.
One of the cases (determined by the Supreme Arbitration Court of the Russian Federation dated August 6, 2012 No. VAS-6909/12) was recently considered by the Presidium of the Supreme Arbitration Court of the Russian Federation. When considering it, the Supreme Arbitration Court practically recognized that the moment when depreciation begins when accounting for taxation of profits on objects of depreciable property, for which ownership must be registered without fail, is not determined by the fact of submitting documents for state registration. Cost of services

Building depreciation: wiring

The account used for depreciation is 02. Accounting entries reflecting the transactions:

Changes in legislation - take one

What really put an end to the long-standing confrontation between taxpayers and regulatory authorities on the issue of starting to calculate depreciation on property, the corresponding rights to which must be registered, was Federal Law No. 206-FZ. The Ministry of Finance explains the change in the procedure for depreciation of real estate by the need to simplify tax accounting and bring it closer to accounting, which is one of the priorities of tax policy. The financial department indicated this in Letter No. 03-03-06/1/421 dated August 17, 2012, which noted that it is intended to highlight areas in which it is inappropriate for the legislation on taxes and fees to establish special rules for determining the indicators used in calculating the base for income taxes that differ from accounting rules. The number of such differences should ultimately be minimized, which was achieved, according to the Ministry of Finance, including by amending Chapter. 25 of the Tax Code of the Russian Federation in accordance with Federal Law No. 206-FZ.