Real estate accounting under the simplified tax system: supporting documents, postings (according to cadastral value)

Real estate means not only building structures, but also land plots, subsoil, and other objects closely related to the land. It is impossible to move them without damaging them. The article will discuss the tax and accounting of real estate, the peculiarities of registering transactions with them in the conditions of reorganization or liquidation of an enterprise, leasing, construction or reconstruction. In this article we will talk about accounting of real estate at cadastral value using the example of the simplified tax system tax regime.

Expenses for the purchase of real estate and acceptance for accounting under the simplified tax system

Real estate is classified as fixed assets (fixed assets) used to create goods and sell them. When the “simplified” tax is calculated, the cost of those fixed assets that are recognized as property subject to depreciation must be taken into account. Neither land nor other environmental management assets are depreciated. Therefore, the cost of the land plot cannot be taken into account when calculating the single tax.

Costs incurred when purchasing real estate from the state are taken into account as expenses for paying for the services of special organizations that prepare documents for their cadastral and technical registration. The initial cost of real estate under the simplified tax system includes:

1. When purchasing – the supplier’s price plus the costs of bringing the object to condition.
2. During construction - the amount paid to the contractor.

The remaining costs can be included in the expenses necessary to ensure normal activities. This occurs in the period in which the costs were incurred.

All expenses for the purchase of real estate are recognized only after the company confirms that the necessary documents have been submitted for registration. When there are no problems with determining the initial cost of the fixed assets and it has been formed, the object can be accepted for accounting. If the ownership right needs to be officially registered, then the acceptance of the OS for accounting is not affected by either the fact of submitting a package of documents or the registration process itself.

Basic wiring:

Inventory of company property

On June 13, 1995, the Ministry of Finance of the Russian Federation issued Order No. 49, which established the need for property inventory and established the procedure for its implementation.

Inventory is an examination of existing property and financial assets and the correlation of their actual quantity with the nominal one. It can be complete, when all of the company’s property is subject to inspection, or partial. The frequency of the inventory depends on the objects that need to be checked. Thus, operating systems are inventoried once every three years. Low-value assets are inspected once a year. The materially responsible person (MRP) initiates the inventory, as a rule, before the annual reporting, with the exception of unscheduled inspections.

An unscheduled inventory is carried out when selling property or transferring it to a third party, when changing the MOL or if the fact of theft is established, etc.

Based on the results of the actions taken, an inventory list is compiled. It indicates any discrepancies found.

The value of an organization's property is the total monetary value of all the company's assets.

To determine it, it is necessary to establish the difference between the final line of the balance sheet asset and the losses reflected in the final line of the third section of the balance sheet. These data make it possible to evaluate the company's assets and its investment activities as of a specific date.

By tracking these indicators over time and analyzing all the changes that have occurred in a given period of time, you can assess the degree of influence exerted by a specific property on its total value. This type of analysis is called horizontal. Inflation indicators and the results of property revaluation are of significant importance in its implementation.

In situations where current assets increase faster than non-current assets, we can talk about accelerating the turnover of all assets of the organization. Accordingly, the opposite situation speaks of capitalizing profits and making the right investments.

If there is an increase in the amount of fixed assets in the total share of property, this leads to an increase in depreciation costs. But if there is a quantitative increase in working capital, this may indicate a retraining of the company. For example, if it moves from the sales sector to the production sector.

In situations where within one year there is a significant increase in the share of long-term investments, it is necessary to conduct a comparative analysis that will allow the enterprise to determine which type of investment is more profitable. The analysis involves comparing investment capital as a percentage. In other words, the income as a percentage from investments in other companies must exceed the investments in its own activities.

As for accounts receivable, its decrease indicates the positive dynamics of the enterprise’s activities.

Accounting for real estate reconstruction under the simplified tax system

Reconstruction of a property means improving its quality characteristics. The costs of its implementation under the simplified tax system are taken into account in expenses. They are recognized as such from the moment the facility is put into operation. Expenses are written off evenly until the end of the year, which marks the completion of reconstruction or repair of the property. Paid expenses are taken into account.

Example No. 1. (income minus expenses), reconstructed the workshop building and launched it in June. In total, the work cost 120 thousand rubles. The money was transferred to the account of the company that did the reconstruction.

Expenses will be taken into account at 40 thousand rubles. (120 thousand/3):

• the thirtieth of June;
• the thirtieth of September;
• thirty first December.

The costs of design documentation are also expenses that increase the cost of the operating system (initial).

Utility contracts have not been renewed

It often happens that the property has already been transferred to the buyer and even the ownership has been re-registered, but the new owner has not signed contracts with resource supply organizations (i.e., according to the documents, the seller of the building is still considered the user of utilities). To prevent the seller from having to bear the burden of costs for utilities that he does not actually use, the contract for the sale of real estate usually includes a provision for the buyer to compensate for these costs until he draws up utility contracts for himself.

At the same time, it is obvious that the cost of utilities reimbursed by the new owner cannot be included by the previous owner (real estate seller) in expenses taken into account for tax purposes. After all, he does not consume these services; they are consumed by the new owner, who reimburses him for utility costs.

Here the question arises: does this amount of compensation form taxable income for the seller of real estate?

We think not. However, local tax officials may have the opposite opinion. Unfortunately, there are no recent clarifications from departments on this topic. There is only an old letter from the Federal Tax Service for Moscow dated May 21, 2008 No. 19-11/048675, in which officials consider the situation with the relationship between the subscriber and the sub-subscriber of utility services. This, of course, is not exactly our case, but the conclusion drawn in this letter, in our opinion, can be extended to the situation under consideration. And the conclusion is this: the fee received as reimbursement of expenses from its recipient (subscriber) is not included in taxable income.

After all, what is income for tax purposes? Income from the sale of goods (work, services) and property rights and non-operating income. In our situation, the previous owner does not sell utilities to the new owner. He is just forced to pay the bills of resource supply organizations for some time. Reissue of these invoices to the new owner does not indicate the sale of utilities. This fact only speaks about the re-invoicing of costs in order to reimburse them under the current circumstances.

What about VAT? After all, the amount of this tax is probably taken into account in utility bills.

There is also a risk here that local tax authorities will consider that the VAT included in the refunded amount is a tax that must be paid by the seller of the property. We believe that this approach is wrong. The reasoning is the same as for income tax. The object of VAT taxation is transactions involving the sale of goods (work, services), as well as the transfer of property rights in the territory of the Russian Federation.

In this case, as we noted earlier, there is no fact of provision of utilities. This is the first thing. And secondly, the amount of compensation cannot be equated to the amount otherwise associated with payment for goods sold, which, by virtue of paragraphs. 2 p. 1 art. 162 of the Tax Code of the Russian Federation increases the tax base for VAT. After all, the refundable amount is not related to payment for the sold property. The property has its own fee, which the buyer pays separately.

Therefore, if during an audit the tax inspectorate tries to charge additional taxes, then in defense of its position you should refer to the arguments we have given.

Initial cost of real estate for enterprises with OSNO

When an organization uses OSN, the cost of OS should include:

1. The cost of a property built or purchased.
2. Interest on a loan (loan) that is attracted to the acquisition of fixed assets and is recognized as an investment asset.
3. Expenses to bring the property to a usable condition (repair work, reconstruction).
4. Other costs that are directly related to the purchase (intermediary commissions, travel expenses).

For companies used by OSNO, there is no need to submit documents for state registration in order to begin calculating depreciation.

How to determine which depreciation group real estate belongs to?

All fixed assets are classified according to depreciation group, which is defined in the OS and OKOF Classifier of the last year of publication.

In order to determine which depreciation group an object belongs to, it is necessary to know its useful life (USI). The organization itself determines the SPI and confirms it with a separate act with the date the premises are put into operation.

According to the OS Classifier (RF Government Decree No. 526 dated April 28, 2018), non-residential buildings and premises belong to:

1. Group seven (from 15 to 20 years inclusive):
   wooden;
2. container;
3. wood-metal;
4. panel;
5. frame;
6. adobe;
7. adobe;
8. other non-residential buildings.
9. Eighth group (from 20 to 25 years inclusive). Buildings with:
   lightweight masonry;
10. with cobblestone, chopped or log walls;
11. with reinforced concrete, brick and wooden pillars.
12. Ninth group (from 25 to 30 years inclusive). Storage for vegetables and fruits:
    with walls made of stone;
13. brick and reinforced concrete columns;
14. and reinforced concrete coverings.
15. Tenth group (from 30 years and above) . Buildings that were not included in previous groups, with durable frames and coatings.

Do you want to know more about non-residential real estate, including industrial and commercial? Read our articles about the peculiarities of transactions with such objects and the nuances of taxation, about their redevelopment, reconstruction and reconstruction, as well as about the ownership of non-residential buildings and premises.

Features of real estate accounting

Real estate is a special commodity. This can be said because:

1. Ownership and other real rights must be registered in a unified state register. Only then are they recognized as legal.
2. When a company initially intends to sell a property, it is not accounted for as fixed assets. This applies to those enterprises that are engaged specifically in the purchase of real estate and its sale. Therefore, such objects for them are not OS, but goods (count 41).
3. For tax purposes, it does not matter how exactly the property is recorded in accounting. It is always reflected as property subject to depreciation.

Useful life of buildings in tax accounting

The depreciation period is determined by the taxpayer independently, taking into account the classification of fixed assets.

The depreciation period is the number of years the asset will be in use. Determining this period depends on a huge number of factors that contribute to the deterioration of a building or premises; for this reason, standard values ​​are approximate.

The service life depends on the choice of building designers, materials and conditions of use and consists of material and moral wear and tear.

In order to approximately calculate the service life of an object, you need to know:

1. Service life of building structural elements:
   parquet floors – 50 years;
2. ceramic roofing – 80 years;
3. concrete foundation – 125 years;
4. wooden floors – 60 years;
5. brick walls - 125 years, etc.
6. How the facility is operatedwhether it is maintained in acceptable condition, which constitutes an assessment of its technical condition:
   good (wear less than 10%);
7. quite satisfactory (11-20%);
8. satisfactory (21-30%);
9. not completely satisfactory (31-40%);
10. unsatisfactory (41-60%);
11. dilapidated (61-80%);
12. unusable (wear more than 80%).

The amount of such wear is determined using special studies and tables.

Obsolescence reflects the non-compliance of a building with its functional purpose, consumer demands (for example, not modern architectural and planning solutions) or a decrease in the cost of performing work on its construction.

Thus, to calculate the useful life of a building or premises you need :

1. Determine which classification group it belongs to and find out the range of the fixed asset’s useful life (for example, 30 years or more).
2. Calculate physical wear and tear using expert and laboratory tests (for example, satisfactory).
3. Assess obsolescence by researching the non-residential real estate market, as well as modern architectural and engineering projects.
4. Based on known data, approximately determine the service life of the object.

Our experts have prepared for you a number of other articles about non-residential real estate. In particular, read about what non-residential premises in an apartment building are and how to purchase them, as well as what are the requirements for the use of such facilities and whether it is possible to live or register there.

Real estate accounting for the seller

When selling or disposing of a property, its value must be written off from accounting. Revenue may be recognized if the following conditions are met:

1. The company has the right to it. It is confirmed by specific agreements.
2. The amount of revenue is designated and calculated.
3. There is evidence that the entity will increase its economic benefits by carrying out the sale transaction.
4. The ownership of the property was transferred to the buyer.
5. The costs of the sales transaction are determined unambiguously.

Income and expenses from writing off fixed assets from accounting are credited to profit and loss as other income and expenses.

Example No. 2. Company A sold a building to company B for 2 million rubles. (VAT – 305,084 rubles). The object was handed over on March 1, 2021. The right to property was registered on April 30. 2021 Initial cost of the structure - 4.5 million; depreciation amount - 3 million.

The selling company made accounting entries:

The tax documents of company A (seller) reflect (rub.):

• Sales income 1,694,916 (2,000,000 – 305,084)
• Expenses 1,500,000
• Profit from sales 194,916

Features of accounting and tax accounting of real estate purchase and sale transactions

Monthly magazine “Economic and Legal Bulletin” N 5, 2006

Krutyakova T. L.

The main difficulties of accounting and tax accounting of real estate <*> are due to the fact that ownership of real estate, the emergence of such rights, their transfer and termination are subject to state registration in the Unified State Register (clause 1 of Article 131 of the Civil Code of the Russian Federation).

At the same time, paragraph 2 of Art. 8 of the Civil Code of the Russian Federation establishes that rights to property subject to state registration arise from the moment of registration, unless otherwise provided by law. The procedure for state registration is determined by the Federal Law on the registration of rights to real estate and transactions with it dated July 21, 1997 N 122-FZ. According to paragraph 3 of Art. 2 of Law N 122-FZ, the date of state registration is the day the corresponding records of rights are made in the Unified State Register of Rights to Real Estate (USRE) <**>. State registration of rights is carried out at the location of real estate within the registration district (clause 4 of article 2 of Law N 122-FZ) and is carried out no later than one month from the date of filing the application and documents required for state registration (clause 3 of article 13 of Law No. 122-FZ). The completed state registration of the emergence and transfer of rights to real estate is certified by a certificate of state registration of rights (clause 1 of Article 14 of Law No. 122-FZ).