How is the useful life and depreciation group of buildings, including used ones, determined?

Serious engineering communications, such as buildings and structures, as a rule, serve as fixed assets for a long time: years and decades. They slowly lose properties useful for use. But the concept of “long” is very vague. In each specific case, the useful life (USI) can vary greatly. How exactly to set this deadline and document it correctly, what points to pay attention to when regulating, read in this article.

What is the useful life of buildings and structures

Serious engineering communications, such as buildings and structures, as a rule, serve as fixed assets for a long time: years and decades. They slowly lose properties useful for use. But the concept of “long” is very vague. In each specific case, the useful life (USI) can vary greatly. How exactly to set this deadline and document it correctly, what points to pay attention to when regulating, read in this article.

Our institution’s balance sheet includes apartments purchased for employees

As a general rule, the useful life of non-financial assets for the purpose of accounting for fixed assets and calculating depreciation is determined based on the information contained in the legislation of the Russian Federation, which establishes the useful life of property for the purpose of calculating depreciation (clause 44 of the Instructions for the Application of the Unified Plan accounting accounts. ", approved by order of the Ministry of Finance of Russia dated December 1, 2010 No. 157n

, hereinafter referred to as Instruction No. 157n).

Why determine SPI

Useful lives are established for adequate accounting purposes. But in accounting and tax accounting, the features of their establishment are different, since the goals are different:

1. SPI for accounting. It is necessary in order to correctly determine the decrease in the value of a fixed asset and correctly calculate depreciation on it. PBU 6/01 in paragraph 20 says that the organization can set this period at its discretion, taking into account the following key parameters:
   how long it is planned to actively use the building or structure;
2. what factors influence physical wear and tear in this particular case;
3. what degree of wear is acceptable;
4. Are there any special restrictions for a specific property (for example, staying in a rental, leasing, etc.).
5. SPI for tax accounting . It is established to classify fixed assets according to the time of their useful operation (clause 1 of Article 258 of the Tax Code of the Russian Federation). For this purpose, all fixed assets are divided into groups, the composition of which is fixed in the classification table. This document was approved by the Government of Russia in Resolution No. 1 of January 1, 2002. The table shows codes according to the classifier adopted for fixed assets (OKOF) and the distribution of fixed assets by groups. For each group, a time range is established within which the SPI can be assigned for each asset (including “long-term” ones, such as buildings and structures).

This is important to know: Garbage disposal in an apartment building: 2021 standards

NOTE! When maintaining accounting records, it is convenient to use the Tax Classification to determine the SPI of real estate: in this case, the calculations will be the same, that is, depreciation deductions will be calculated at a minimum. But it is also possible to set a smaller SPI in accounting.

The method for determining SPI must be recorded in the accounting policies of the organization.

How to calculate the initial cost of an object and the amount of wear and tear?

The initial cost of a building or premises is made up of the sum of the costs of acquiring , bringing to a usable condition or construction. At the same time, the cost does not take into account VAT and excise taxes (except for certain cases described in the Tax Code of the Russian Federation).

In the case of receiving an object free of charge, its value is determined through an independent assessment.

The initial cost can change only in cases:

• modernization and completion;
• reconstruction;
• partial liquidation of the facility.

To calculate depreciation, an organization can choose the most convenient method for itself.:

• reducing balance;
• linear;
• by physical volume of products;
• based on the sum of SPI years.

Using the reducing balance method, you need to know:

1. residual value of the building on the first day;
2. depreciation rate;
3. acceleration factor.

When calculating depreciation, the residual value must be divided by the number of months before the end of the joint venture, when the residual value of the building reaches 20% of the original.

A = (P0 – P1)*N , where

• P0 – cost of the object;
• P1 – depreciation for the previous year;
• A – depreciation for the current year;
• N – depreciation rate (calculated as the ratio of 100% to the number of years of SPI).

Example : If the annual depreciation rate is 3.3%, the SPI is 30 years, and the cost is 2,500,000 rubles, then in the first year the depreciation will be equal to 2,500,000: 30 = 83,333.3 rubles.

In the second year: (2500000-83333.3) *0.033=79750.0011

And so on until the cost is completely written off as depreciation.

With the straight-line method, depreciation for the previous year is not taken into account:

A = P0 *N

That is, the same amount is charged every year.

The method that takes into account the SPI is based on the initial cost of buildings and the summation of the number of years of its service.

N = (SPI - (T-1) / sum of SPI numbers) * 100% , where T is the year of depreciation (first, second, etc.)

Example : if we take existing data, then the sum of SPI numbers = 1+2+3+4+5+…+30=465

N= 30/465*100%=6.45%

A=2500000 * 0.0645=161250 rubles

When calculating based on information about the physical volume of products produced in the reporting period, you need to know:

• planned volume of production;
• the original cost of the building.

A = P0 / Pk , where Pk is the quantity of production.

Example : if we add to the existing information that the planned production is 893,500 units, then:

N = 2500000 / 893500 = 2.8 rubles/piece.

If in the first month the actual volume was 65214, then:

A = 65214 * 2.8 = 182599 rubles

When choosing the most convenient method, the organization must note it in its accounting policy.

Depreciation groups of buildings and structures

According to the Classification, various types of real estate in the form of buildings and structures can be classified into several groups for calculating depreciation - from 4 to 10. Each group includes buildings of certain, strictly defined types, for which different time intervals are provided for. Table 1 shows various immovable objects with the SPI periods established for them.

Table. Depreciation groups for buildings and structures

Learn more about depreciation groups

According to the classification given in the Tax Code, the following depreciation groups are distinguished:

• First group. It includes all non-durable property, the use of which lasts from one to two years. The minimum period of use will be 13 months, and the maximum period will not exceed 24 months.
• The second group consists of property whose useful life is up to three years.

Depreciation bonuses of no more than 10 percent are applicable to both the first and second groups.

• The third group includes fixed assets with a useful life of no more than five years.

The depreciation bonus for groups three to seven is calculated in an amount of up to 30 percent.

All the first three groups of fixed assets are not subject to an increased depreciation rate for the leased asset.

Starting from 2021, property included in the third depreciation group will be subject to property tax, unless a constituent entity of the Russian Federation adopts a special law on the application of benefits in the territory of a specific region by this time.

• The fourth group includes property whose useful life is up to seven years. This group includes transmission devices and structures, buildings, equipment and machinery, inventory, plantings, vehicles and livestock. This depreciation group is subject to property tax in the same way as the previous one.
• Fifth group. Includes fixed assets with a useful life of up to 10 years. This group includes transmission devices and structures, equipment and machinery, buildings, inventory, transport, as well as property that was not included in other groups.
• The sixth group includes fixed assets whose useful life is up to 15 years. This group includes housing, equipment and machinery, transmission devices and structures, transport, plantings and various inventory. The tax rules for this group are the same as in the previous three groups.
• The seventh group is property with a useful life of up to 20 years. The group includes buildings, machinery, transport, equipment, transmission devices and structures, perennial plantings and other fixed assets.
• The eighth group includes property with a service life of up to 25 years. This type of fixed assets includes buildings, transmission devices and structures, inventory and transport.

For groups 8 to 10, a depreciation bonus of no more than 10 percent begins to apply again. Also, the latest depreciation groups use only the linear method of calculating the useful life.

• The ninth group includes fixed assets with a service life of up to thirty years.

This group includes buildings, transmission devices and structures, equipment and machinery, vehicles, etc. The depreciation bonus is also up to 10 percent.

• Tenth group. There are no restrictions on the maximum useful life of the building and other objects of this group. The composition of the property is the same as in previous cases. The useful life of buildings of group 10 is more than 30 years.

How to determine SPI: algorithm

When a company acquires a fixed asset - any kind - it needs to be depreciated, for which it is necessary to know the period of its planned useful use. In the table it is given in approximate time frames, but for each object it must be indicated precisely. The algorithm is as follows:

1. Compare with the left column of the Classification table - determine which depreciation group your building and structure belongs to.
2. Specify the established deadline in the text of the Order signed by the head of the organization.
3. For accounting, set the SPI yourself or also use the Classification (this is much more convenient).

Depreciation methods

It is quite easy to calculate the depreciation of a building using accounting programs. To do this, it is often enough to fill out the fixed asset card electronically, entering all the requested data. Next, a special program will independently make the calculation.

However, in order to avoid mistakes, you should not only have an idea of ​​how depreciation is calculated without using specialized programs, but also be well versed in the entered parameters of the useful periods of buildings.

SPI for parts and the whole

What if the room for which the SPI needs to be determined is part of the building? There are accepted rules regulating quite common situations in determining the SPI of buildings and structures:

• each individual residential premises in a common residential building (for example, an apartment building) receives the same SPI as the entire building as a whole - as a rule, for at least 30 years;
• if there is a non-residential premises (hall, office, etc.) in a residential building, then it acquires the same SPI as the entire house (also, as a rule, from 30 years).

On accounting for apartments for the organization's employees

The remaining part of the housing stock is in state and municipal ownership. First, let’s look at the legal basis for an organization’s acquisition of residential property. Let us turn to the Housing Code of the Russian Federation of December 29, 2004 N 188-FZ (hereinafter referred to as the Housing Code of the Russian Federation). According to Art. 17 of the Housing Code of the Russian Federation, residential premises are intended for the residence of citizens; the placement of industrial production in residential premises is not allowed . Ownership and other real rights to residential premises in accordance with Art. 18 Housing Codes of the Russian Federation are subject to state registration in cases provided for by the Civil Code of the Russian Federation (hereinafter referred to as the Civil Code of the Russian Federation), the Federal Law on the Registration of Rights to Real Estate and Transactions with It, as well as the Housing Code. To purchase residential property, you must enter into a purchase and sale agreement. Under the agreement for the purchase and sale of real estate (real estate sale agreement) in accordance with Art. 549 of the Civil Code of the Russian Federation, the seller undertakes to transfer the ownership of the apartment to the buyer. Let us remember in passing that Art. 130 of the Civil Code of the Russian Federation, immovable things (real estate, real estate) include land plots, subsoil plots and everything that is firmly connected to the land, that is, objects whose movement without disproportionate damage to their purpose is impossible, including buildings, structures, unfinished construction projects . The contract for the sale of real estate requires a written form . The agreement is concluded by drawing up one document signed by the parties, and failure to comply with the written form of the contract for the sale of real estate entails its invalidity, which follows from Art. 550 Civil Code of the Russian Federation. Transfer of ownership of real estate under a real estate sale agreement to the buyer on the basis of Art. 551 of the Civil Code of the Russian Federation is subject to state registration. The contract for the sale of real estate must contain data that allows one to definitely establish the real estate to be transferred to the buyer under the contract, as well as the price of the property. In the absence of such data in accordance with Art. Art. 554 and 555 of the Civil Code of the Russian Federation, the contract is considered not concluded. Agreement for the sale of an apartment on the basis of clause 2 of Art. 558 of the Civil Code of the Russian Federation is subject to state registration and is considered concluded from the moment of such registration. Registration is carried out in accordance with Federal Law No. 122-FZ of July 21, 1997 “On state registration of rights to real estate and transactions with it.” The instructions on the procedure for state registration of purchase and sale contracts and transfer of ownership of residential premises were approved by Order of the Ministry of Justice of Russia dated August 6, 2001 N 233. It should be noted that the procedure for registering rights to real estate and contracts is carried out on a paid basis. The amount of state duty for state registration is established by Art. 333.33 of the Tax Code of the Russian Federation (hereinafter referred to as the Tax Code of the Russian Federation). In accordance with paragraphs. 20 clause 1 of the said article, the state duty is paid for state registration of rights, restrictions (encumbrances) of rights to real estate, contracts for the alienation of real estate: - individuals - 500 rubles; — organizations — 7,500 rubles; - federal government bodies, government bodies of constituent entities of the Russian Federation, local government bodies - 100 rubles. The transfer of real estate by the seller and its acceptance by the buyer is carried out on the basis of a transfer deed signed by the parties, or another transfer document . The apartment purchased by the organization will be accepted for accounting as an object of fixed assets; accordingly, the transaction for its acquisition must be reflected in the accounting accounts . According to Art. 9 of the Federal Law of November 21, 1996 N 129-FZ “On Accounting”, accounting is carried out on the basis of primary accounting documents that document all business transactions carried out by the organization. That is, the basis for reflecting information about completed business transactions in accounting registers are primary documents recording the fact of a business transaction . Primary documents are accepted for accounting provided that they are compiled according to the forms contained in the albums of unified forms of primary accounting documentation. Unified forms of primary accounting documentation for accounting of fixed assets, approved by Resolution of the State Statistics Committee of Russia dated January 21, 2003 N 7, must be used by legal entities of all forms of ownership operating on the territory of the Russian Federation. An exception is made for credit organizations and budgetary institutions. If an organization, under a purchase and sale agreement, purchases an apartment from another organization, then the document confirming the transfer of real estate will be the Certificate of Acceptance and Transfer of a Building (Structure) (Form N OS-1a). The transfer and acceptance certificate is drawn up in at least two copies. The act is approved by the heads of the recipient and delivery organizations. The detail “State registration of rights to real estate”, contained in Act No. OS-1a, is filled out only for real estate and in cases of transactions with it. “Information about the condition of the object on the date of transfer” is filled in if an object that was in operation with another organization is accepted for accounting. If the seller of the purchased apartment is an individual, then there is no unified form of document for registration of such a transaction; the act can be drawn up in any form. In this case, it is necessary to comply with the requirements of Art. 9 of the Federal Law “On Accounting” states that an independently developed document must contain all the mandatory details, the list of which is given in the said article of the Law. The main document in accordance with which organizations keep accounting records of fixed assets is the Accounting Regulations “Accounting for Fixed Assets” PBU 6/01″, approved by Order of the Ministry of Finance of Russia dated March 30, 2001 N 26n (hereinafter referred to as PBU 6/01) . Moreover, the norms of this accounting standard are applied taking into account the Guidelines for the accounting of fixed assets, approved by Order of the Ministry of Finance of Russia dated October 13, 2003 N 91n (hereinafter referred to as Guidelines N 91n). An asset is accepted by an organization for accounting if it simultaneously satisfies the following conditions : - the object is intended for use in the production of products, in the performance of work or provision of services, for the management needs of the organization or for provision for a fee for temporary possession and use or for temporary use; - the object is intended for use for a long time, that is, a period lasting more than 12 months or the normal operating cycle if it exceeds 12 months; — the organization does not intend the subsequent resale of this object; — the object is capable of bringing economic benefits (income) to the organization in the future. Regarding the moment of acceptance of an asset for accounting as part of fixed assets, we note the following. According to the Ministry of Finance of Russia, set out in Letter dated June 9, 2009 N 03-05-05-01/31, an object is registered as a fixed asset if it meets the conditions listed in clause 4 of PBU 6/01, and it is brought into a condition suitable for use. The accounting policy should establish a provision regarding when fixed assets that require state registration are accepted for accounting. Until the ownership of a given object is registered, the organization does not have the right to take the object into account on the balance sheet as fixed assets, since the principle of property isolation is violated. When accepting an apartment for accounting, the organization must determine its useful life . Let us recall that for profit tax purposes, the useful life of fixed assets is determined taking into account the Classification of fixed assets included in depreciation groups, approved by Decree of the Government of the Russian Federation of January 1, 2002 No. 1 (hereinafter referred to as the Classification). Despite the fact that the Classification is intended for tax accounting purposes, it can also be used for accounting purposes, as provided for in paragraph 1 of this Resolution. As follows from paragraph 6 of PBU 6/01, the unit of accounting for fixed assets is an inventory item . Fixed assets in accordance with clause 7 of PBU 6/01 are accepted for accounting at their original cost, the procedure for determining which is established by clauses 8 - 12 of PBU 6/01 and depends on the method of receipt of the fixed asset to the organization. If an apartment is purchased for a fee, its initial cost is determined as the sum of the organization's actual costs for its acquisition, excluding VAT and other refundable taxes (except for cases provided for by the legislation of the Russian Federation). Please note that the amount of the state fee paid, along with the amount paid in accordance with the agreement to the seller of the apartment, will be included in the actual costs of purchasing the apartment. The initial cost of the apartment at which it was accepted for accounting is not subject to further change. An exception according to PBU 6/01 is the cases of completion, additional equipment, reconstruction, modernization, partial liquidation and revaluation, that is, in the listed cases, a change in the original cost of fixed assets in which they are accepted for accounting is allowed. The initial cost of the purchased apartment will be reflected in the debit of account 01 “Fixed assets”, if the apartment is intended for use by the organization itself, or in account 03 “Income-generating investments in material assets”, if the apartment is intended for rental in correspondence with the credit of account 08 “Investments” into non-current assets." In the debit of account 08, the purchased apartment is reflected on the date of signing the transfer and acceptance certificate of real estate in correspondence with the credit of account 60 “Settlements with suppliers and contractors”. Repayment of debt to the seller of the apartment is reflected in the debit of account 60 and the credit of account 51 “Current accounts”. The cost of fixed assets is repaid through depreciation, which is determined by clause 17 of PBU 6/01. Paragraph 49 of Methodological Recommendations No. 91n clarifies that by calculating depreciation, the cost of fixed assets located in an organization under the right of ownership, economic management, operational management, including fixed assets leased, gratuitous use, and trust management is repaid. For housing assets accounted for as part of profitable investments in material assets, depreciation is calculated in accordance with the generally established procedure. Depreciation is accrued regardless of the organization's performance in the reporting period and is reflected in the accounting records of the reporting period to which it relates, as follows from clause 24 of PBU 6/01. Depreciation on fixed assets is calculated using one of the methods provided for in clause 18 of PBU 6/01: - linear method; — reducing balance method; — method of writing off value by the sum of the numbers of years of useful life; — a method of writing off cost in proportion to the volume of products (works). The amounts of accrued depreciation are recognized as expenses for ordinary activities or other expenses in accordance with the Accounting Regulations “Expenses of the Organization” PBU 10/99, approved by Order of the Ministry of Finance of Russia dated May 6, 1999 N 33n. It is quite obvious that by owning an apartment that is used to accommodate business travelers, the organization will bear the costs of its maintenance by paying utility bills and energy supplies. Expenses for paying utility bills for accounting purposes form expenses for ordinary activities as expenses for the maintenance and operation of fixed assets and other non-current assets, as established by clause 7 of PBU 10/99. For profit tax purposes , an apartment acquired by an organization is recognized as depreciable property, which follows from paragraph 1 of Art. 256 and paragraph 1 of Art. 257 Tax Code of the Russian Federation. The initial cost of the apartment in accordance with paragraph 1 of Art. 257 of the Tax Code of the Russian Federation is defined as the amount of expenses for its acquisition and bringing it to a state in which it is suitable for use. The initial cost does not include amounts of value added tax and excise taxes, except in cases provided for by the Tax Code of the Russian Federation.

Change in initial cost in accordance with clause 2 of Art. 257 of the Tax Code of the Russian Federation is possible in cases of completion, additional equipment, reconstruction, modernization, technical re-equipment, partial liquidation of fixed assets and on other similar grounds. When determining the useful life of purchased housing, you should be guided by the Classification of fixed assets included in depreciation groups, approved by Decree of the Government of the Russian Federation of January 1, 2002 No. 1 “On the Classification of fixed assets included in depreciation groups,” which we have already mentioned in our article. Fixed assets, the rights to which are subject to state registration in accordance with the legislation of the Russian Federation, are included in the corresponding depreciation group from the moment the documents are submitted for state registration, and this fact must be documented. The Tax Code of the Russian Federation provides for two methods of calculating depreciation for objects of depreciable property: linear and non-linear. The method of calculating depreciation is established by the taxpayer independently and applies to all fixed assets, regardless of the date of their acquisition. Do not forget that regardless of which method of calculating depreciation the taxpayer chooses, only the linear method of calculating depreciation can be applied to buildings, structures, and transmission devices included in the eighth to tenth depreciation groups. Calculation of depreciation on fixed assets in accordance with clause 4 of Art. 259 of the Tax Code of the Russian Federation begins on the 1st day of the month following the month in which the fixed asset was put into operation. With the linear method, the amount of depreciation is determined monthly separately for each fixed asset item, as defined in clause 2 of Art. 259 of the Tax Code of the Russian Federation. The procedure for calculating depreciation amounts using the linear method is established by Art. 259.1 Tax Code of the Russian Federation. The amounts of accrued depreciation for the purpose of calculating income tax in accordance with paragraphs. 3 p. 2 art. 253 of the Tax Code of the Russian Federation are taken into account as expenses associated with production and sales, and are recognized as an expense on a monthly basis based on the amount of accrued depreciation, which follows from clause 2 of Art. 272 of the Tax Code of the Russian Federation, which establishes the procedure for recognizing expenses using the accrual method. We draw your attention to Letter of the Ministry of Finance of Russia dated April 21, 2006 N 03-03-04/1/367. In it, employees of the financial department expressed the opinion that depreciation accrued on depreciable property not used by the taxpayer in activities aimed at generating income does not reduce the income received when calculating the tax base for corporate income tax. That is, if the apartment purchased by the organization is not occupied by seconded employees for some periods, then there is a high probability that the organization will not be able to take into account expenses in the form of accrued depreciation for these periods for profit tax purposes. Can the costs of maintaining an apartment be taken into account for corporate income tax purposes? The answer to this question can be found in Letter of the Ministry of Finance of Russia dated June 20, 2006 N 03-03-04/1/533. The Letter states that pp. 12 clause 1 art. 264 of the Tax Code of the Russian Federation provides for such type of expenses as rental of living quarters as part of business trip expenses. According to paragraph 1 of Art. 252 of the Tax Code of the Russian Federation, for profit tax purposes, expenses are recognized as justified and documented expenses. In this case, documented expenses mean expenses confirmed by documents drawn up in accordance with the legislation of the Russian Federation, or documents drawn up in accordance with business customs applied in the foreign state in whose territory the corresponding expenses were made, and (or) documents indirectly confirming the expenses incurred (including a customs declaration, business trip order, travel documents, report on work performed in accordance with the contract). According to the Ministry of Finance, the costs of maintaining an apartment intended for the accommodation of posted workers, on the basis of documents indirectly confirming the fact that these workers were staying there during a business trip (travel certificate, travel documents to the place of business trip and other documents), can be attributed to expenses taken into account when taxing profits as expenses. At the same time, as Ministry of Finance employees noted, such expenses are accepted for tax accounting in the proportion in which the apartment was used for the accommodation of posted workers. Expenses for maintaining the apartment during the time that the apartment was empty cannot be recognized for income tax purposes.

SPI upon change of owner

A piece of real estate may change its owner and end up in the hands of a new owner not new. How to determine the useful life in this case?

It is necessary to correctly establish depreciation, and from here calculate the depreciation period. This must be done separately for tax and accounting purposes.

SPI of used objects for tax accounting

The tax legislation of the Russian Federation provides for the possibility of reducing the SPI of a non-new property for the period during which it was used by the former owner (clause 7 of Article 258 of the Tax Code of the Russian Federation). This time can be easily determined from the accompanying documentation (transfer and acceptance certificate OS-1a) when purchasing a fixed asset.

IMPORTANT! If it is not possible to establish this period from the documents, then it is legally impossible to reduce the SPI. Even if such confirmation exists, a reduction in SPI is not necessary.

If there is no documentary evidence of the operation of the building, it will be considered new from the point of view of tax accounting. To determine its SPI, the above algorithm should be used.

This is important to know: Real estate tax for legal entities in 2021

If you purchase a building or structure that has been in use for more than 30 years, it may end up being completely depreciated. In this case, the new owner evaluates the condition of the object according to safety regulations and sets a reasonable SPI for it at his own discretion.

SPI of non-new objects for accounting

There are no legislative regulations here, other than those prescribed in the accounting policies of the organization itself. By establishing SPI for accounting, the owner can:

• follow the requirements of the Classification (duplicate tax accounting);
• Having thoroughly assessed the object, set another appropriate period.

What are depreciation charges?

These are monthly transfers of the value of non-residential real estate in parts in monetary terms to a special account, which is called “depreciation”. According to Art. 259 of the Tax Code of the Russian Federation, these deductions must be made by all organizations, taking into account the book value of real estate, which is their property. There are some buildings to which this law does not apply, since they are simply mothballed.

Any room wears out and becomes obsolete physically and morally as it is used.

Depreciation has the following purposes:

• use the transferred funds to improve existing or purchase new real estate as necessary;
• distribute large expenses in parts over periods, on an accrual basis;
• investors get the impression that the company does not have large expenses and losses, since at the end of its service life there will not be a huge figure in the report for write-off of the facility, which will seem like a loss-making amount for investors;
• payment of income tax is reduced.

All this helps reduce the owner’s losses on maintenance and subsequent write-off of the non-residential property.

Features of SPI for certain real estate objects

Each building and structure has a set of unique characteristics that affect the period of its possible use as a fixed asset. But there are some features that allow you to group objects to establish an adequate SPI. Let's consider the most common types of buildings and structures from the point of view of classifying them into one or another depreciation group.

Brick buildings

Brick is a very strong and durable material that is little subject to wear. Buildings constructed from it serve regularly for many decades without losing any significant characteristics. Whether they are residential buildings or other structures, their SPI will be the longest of those provided for in the Classification table. The rubricator provides for group 10 for them, according to which you can set any period over 30 years. Which one, the organization has the right to determine itself.

Garages

Schools

This type of structure is not residential: 24-hour stays are not planned there. If the school is capital, it is most often classified as group 10: these structures last more than 30 years.

Depreciation objects

Depreciation of a building and the useful life of the same property are related concepts.

The first is the transfer of the value of an object to the products created during its use. This also includes the work and services provided. Deductions taking into account depreciation help create a source for simple reproduction. Thus, it is actually possible to increase the cost of the final product by 5-7 percent, which will later be used to repair or replace equipment, if necessary. In other words, depreciation of a building allows you to transfer the money spent on the acquisition of capital assets to services and goods, including them in the final cost. Depreciation is charged on the following objects:

1. Fixed assets whose consumer properties do not change over time. This property includes plots of land, museum objects, environmental management facilities, etc. The useful life of fixed assets (buildings and structures) is determined in accordance with the depreciation group.
2. Housing stock. But only in cases where it is not used with the intention of generating income.
3. Road maintenance and external improvement.
4. Perennial plantings that have not reached operational age.
5. Cattle
6. Used for the purpose of mobilization and mobilization preparation. These include facilities that are mothballed and closed for production and management needs, as well as those put out for temporary paid use.

How to determine the useful life of a non-residential building

In tax accounting, depreciate property over its useful life. Determine the useful life of a fixed asset yourself using the following rules: Determine the useful life of used fixed assets in a special manner, see How to calculate depreciation of used fixed assets in tax accounting. The validity of this conclusion is confirmed by arbitration practice, see. You can determine the depreciation group and useful life by submitting a corresponding request to the Ministry of Economic Development of Russia.

Display in the balance sheet

By law, depreciation must be charged to the credit of account 02 (depreciation of fixed assets).

By debit, depreciation can be reflected on account 25 - general production or account 26 - general economic calculations. It all depends on the specific purpose of use. For example, account 25 records workshops and other premises that take part in production. Account 26 contains offices and premises for managers.

If the OS is used to create a new OS, then its depreciation will be charged to line 1190 of non-current assets. In the balance sheet, depreciation is taken into account in line 2350 of other expenses or in the line of commercial expenses if the premises are regularly rented out.

Depreciation helps reduce losses for company owners and shareholders due to the obsolescence and unusability of a non-residential property. It is important to take into account the useful life, as well as the cost of the premises. The SPI can be calculated independently or refer to a special Classifier, where, depending on the material and design of the building, its SPI is indicated.

To which depreciation group can non-residential premises be classified for the purpose of calculating income tax?

Each of them includes buildings taking into account their structural characteristics. Thus, the useful life of the building is determined in the range specified for each depreciation group. Moscow from Thus, in the case under consideration, documents confirming operation may be:. The third group includes fixed assets with a useful life of no more than five years.

Further calculations are carried out in exactly the same way. In a non-linear way, the cost of buildings is written off much faster than in a linear way. The method is convenient to use in organizations that prefer accelerated depreciation. Peculiarities of depreciation calculations for re-opened and reconstructed buildings When buildings are mothballed for a period exceeding three months, depreciation is paused.

Setting the period

Depreciation on a building is calculated using an indicator such as the standard useful life period.

Why are the following documents taken into account:

1. Government Resolution No. 1, adopted in 2002. Used for buildings that are included in depreciation groups from 4 to 9. Each of them includes buildings taking into account their structural characteristics. Thus, the useful life of the building is determined in the range specified for each depreciation group.
2. Resolution of the Council of Ministers of the Soviet Union of 1990. It regulates the calculation of depreciation for the 10th depreciation group. The useful life period in years is calculated by dividing the number 100 by the depreciation rate for the building prescribed in the Resolution.

The coefficients of the Soviet Decree can only be used in the amount of 3.3 to 0.4 percent, since this corresponds to the 10th depreciation group, which assumes a useful life of the building starting from thirty years and four months. For all other cases, the first document should be used.

Often, companies automate accounting, which can lead to decreased employee attention and errors. This could be a typo when entering balances into the program or incompetence of the entered data. Therefore, it is necessary to carefully check the estimated useful periods and make adjustments to incorrectly determined depreciation rates. It is logical to do this before the error is discovered by the controlling organization.

The question of how to determine the useful life of a building, using what tools and coefficients, can be answered based on the materials already considered.

Useful life of the building

The organization purchased a building that was in use. There is an extract from the technical passport of the BTI, according to which the year of construction is the Previous owner is an individual entrepreneur using the simplified tax system. Among the documents containing data to determine the actual life of the building by the previous owners, there is a purchase and sale agreement, an acceptance certificate not in the OS-1 form and an extract from the technical passport of the BTI. The building belongs to the 1st group of the Classification of fixed assets. The method of calculating depreciation is linear.

The organization purchased for RUB 2,600,000

The organization's investments in objects, which are subsequently taken into account as part of fixed assets, are reflected in account 08 “Investments in non-current assets”. The initial cost of an item of fixed assets, formed in the established order, accepted for operation, is written off to the debit of account 01 “Fixed Assets” (Instructions for the application of the Chart of Accounts for accounting financial and economic activities of organizations, approved by Order of the Ministry of Finance of Russia dated October 31, 2000 N 94n (Order of the Ministry of Finance RF dated October 31, 2000 N 94n)).

How to find out the depreciation rate for a non-residential building

Please enable JavaScript for a better site experience. Many enterprises have buildings and structures on their balance sheets, for which depreciation charges are calculated. According to it, buildings and structures belong to groups for which the maximum useful life is set at and over 30 years, respectively. Regardless of the commissioning period, to calculate depreciation for buildings and structures, use the linear accrual method, in which the cost of a fixed asset decreases evenly over the entire period of use. Accrue depreciation on the building in accordance with the depreciation rate that is determined for this object, taking into account its useful life.

They are close to those for accounting, but still different. The useful life is the period during which an item of fixed assets or an item of intangible assets serves to fulfill the goals of the taxpayer's activities. The useful life is determined by the taxpayer independently on the date of commissioning of this depreciable property item.

Tip 1: How to calculate depreciation on a building

An indispensable real estate assistant. Rubric question - answer related to real estate. The organization acquired the following real estate assets under a purchase and sale agreement for the amount of 2 rubles: a warehouse with a total area of ​​7 sq. m. When transferring property, the cost of each individual inventory item will be specified by the seller.

This is important to know: Will an orphan lose an apartment if she gets married?

WATCH THE VIDEO ON THE TOPIC: Depreciation by the sum of numbers of years - Calculation of depreciation using an example - Accounting - Methods of depreciation of fixed assets

In the classification of fixed assets included in depreciation groups, code Non-residential buildings can include objects such as warehouses, garages and industrial buildings, commercial retail buildings, buildings for entertainment events, hotels, restaurants, schools, hospitals, prisons, etc. Prison premises , colonies, pre-trial detention centers, barracks for prisoners, barracks for military personnel, dormitories of correctional and educational colonies, medical correctional institutions, schools and hospitals are considered as non-residential buildings, despite the fact that they may serve as a place of residence. The object of classification of this type of fixed assets is each individual building. If buildings are adjacent to each other and have a common wall, but each of them is an independent structural unit, they are considered separate objects. External extensions to the building that have independent economic significance, separate boiler house buildings, as well as outbuildings, warehouses, garages, fences, sheds, fences, wells, etc., are independent objects.

General rules for accounting

There are general rules that an accountant must follow when calculating depreciation of non-residential premises and non-residential buildings. These include:

• accruals occur monthly in the amount of 1/12 of the amount calculated for the current year;
• during the SPI, depreciation accrual is not suspended;
• accrual stops from the first day of the following month after the amount of the cost of the fixed asset has been fully repaid or it has been removed from the company’s books.

Everything is described in detail in instructions No. 157 N.

Depreciation calculation: basic provisions

Question: An organization purchased non-residential premises for an office on the first floor of a panel residential apartment building. To which depreciation group can this non-residential premises be classified for the purpose of calculating income tax? Answer: An office non-residential premises acquired by an organization, located on the ground floor of a panel residential apartment building, for the purposes of determining the useful life and calculating income tax, in our opinion, from January 1. Rationale: In tax accounting according to paragraph. The useful life is recognized the period during which an object of fixed assets serves to fulfill the goals of the taxpayer’s activities. The useful life is determined by the taxpayer independently on the date of commissioning of the depreciable property in accordance with the provisions of Art. The list of property that belongs to fixed assets is established by OKOF. Until January 1

We draw your attention to the Letter of the Ministry of Finance of Russia dated April 21. In it, employees of the financial department expressed the opinion that depreciation accrued on depreciable property not used by the taxpayer in activities aimed at generating income does not reduce the income received when calculating the tax base for corporate income tax. That is, if the apartment purchased by the organization is not occupied by seconded employees for some periods, then there is a high probability that the organization will not be able to take into account expenses in the form of accrued depreciation for these periods for profit tax purposes. The new procedure for writing off the value of fixed assets can only be applied to those objects that were acquired after January 1.

Top 5 Frequently Asked Questions

Question No. 1. The building has been under renovation for 10 months. Is it necessary to calculate depreciation?

Answer. Depreciation should be suspended if the repair period exceeds one year. Until this period, it is calculated in accordance with the procedure established by the enterprise.

Question No. 2. The individual entrepreneur owns a building with a mortgage. Is it subject to depreciation? IP on OSNO.

Answer. Depreciation is charged. But it can only be taken into account for tax purposes if the building is used for business.

Question No. 3. An organization bought non-residential premises in order to place an office in it. It occupies the first floor of a multi-storey residential building. Is there a depreciation group to which it should be classified?

Answer. Residential buildings last more than 30 years, so the premises that are part of them should be classified as group ten.

Question No. 4. How to determine the depreciation period of a building in tax accounting?

Answer. It is necessary to establish its SPI using the official OS Classification (Government Decree 31 of 2002 plus amendments).

Question No. 5. SPI should be defined as:

1. Any provided for by the corresponding depreciation group.
2. Maximum for the same group?

Answer. Any useful life of buildings is selected, corresponding to the time interval provided for the group of fixed assets to which they need to be classified.

Buildings belong to the passive part of the OS. For their timely restoration and continuation of SPI, it is important that the enterprise, by analyzing its benefits, independently determines which depreciation methods are appropriate for it to use.

Rationale

The classification of fixed assets included in depreciation groups determines:

The fourth depreciation group (useful life over 5 years and up to 7 years) includes “Buildings (except residential)” - “Buildings made of film materials (air-supported, pneumatic frame, tent, etc.); mobile all-metal; mobile wood-metal; kiosks and stalls made of metal structures, fiberglass, pressed plates and wood” (OKOF code 210.00.00.00.000).

The fifth depreciation group (useful life over 7 years and up to 10 years) includes “Buildings (except residential)” - “Prefabricated and movable buildings” (OKOF Code 210.00.00.00.000).

The sixth depreciation group (useful life over 10 years up to 15 years inclusive) includes “General purpose residential buildings” - “frame-reed and other lightweight dwellings” (OKOF code 100.00.20.10).

The seventh depreciation group (useful life over 15 years and up to 20 years) includes “Buildings (except residential)” - “Wooden, frame and panel, container, wood-metal, frame-cladding and panel, adobe, adobe, adobe and other similar "(OKOF code 210.00.00.00.000).

The eighth depreciation group (useful life over 20 years and up to 25 years) includes “Buildings (except residential)” - “Frameless buildings with lightweight masonry walls, reinforced concrete, brick and wooden columns and pillars, with reinforced concrete, wooden and other floors ; wooden buildings with cobblestone or chopped log walls; bunded structures" (OKOF code 210.00.00.00.000).

The ninth depreciation group (useful life over 25 years and up to 30 years) includes “Buildings (except residential)” - “Vegetable and fruit storage facilities with stone walls, reinforced concrete or brick columns, reinforced concrete coverings” (OKOF code 210.00.00.00.000 ).

The tenth depreciation group (useful life over 30 years) includes “Buildings (except residential)” - “Buildings, except those included in other groups (with reinforced concrete and metal frames, with walls made of stone materials, large blocks and panels, with reinforced concrete, metal and other durable coatings).”

A few words about the two editions of the OS Classification.

So, the taxpayer determines the depreciation rate for purchased used assets, taking into account the SPI established by the previous owner. Otherwise, he can independently determine the SPI of purchased OS, including used ones, in the generally established manner (see letters of the Ministry of Finance of Russia dated October 3, 2017 No. 03-03-06/1/64282, dated August 11, 2017 No. 03-03 -06/1/51573).

In the listed letters, the financial department also emphasized that on the issue of the procedure for applying the Classification of OS as amended by Decree of the Government of the Russian Federation dated July 7, 2016 No. 640 for the purposes of calculating income tax, one should be guided by the Letter of the Ministry of Finance of Russia dated November 8, 2016 No. 03-03-RZ/65124, which states that in relation to OS put into operation before 01/01/2017, the SPI determined by the taxpayer when putting them into operation is applied.

Let us explain what is meant here.

We remind readers that from 01/01/2017, the above-mentioned resolution made changes to the OS Classification due to the emergence of a new OKOF.

Since this date, not only new objects have appeared in the FA Classification, but also there have been (minor) movements of individual fixed assets from group to group, which led to an increase or decrease in their minimum and maximum SPI.

For example, general-purpose trucks with a carrying capacity of over 3.5 to 5 tons, until January 1, 2017, according to the old OKOF, had code 15 3410194 and belonged to the position “Truck vehicles, road tractors for semi-trailers (general purpose vehicles: flatbeds, vans, tractor-trailers; dump trucks)” were thus included in the fourth depreciation group (with SPI from 5 to 7 years inclusive).

From 01/01/2017 for trucks with a technically permissible maximum weight of over 3.5 tons, but not more than 12 tons, the OKOF code is set to either 310.29.10.42.112 (with a gasoline engine) or 310.29.10.41.112 (with a diesel engine) ). Thus, now these cars are included in the fifth depreciation group (with SPI from 7 to 10 years inclusive).

Let’s assume that the previous owner put a fixed asset into operation before January 1, 2017, guided by the old edition of the OS Classification, and included the object in one depreciation group, and the new owner, purchasing a used object after this date, discovers that the fixed asset “moved” to another depreciation group. How to be in this case?

An organization can focus on the SPI established by the previous owner, or set a different period, but within the framework of the depreciation group in which the asset was at the time of its commissioning. We believe that this is exactly what the Ministry of Finance had in mind in the above-mentioned Letter dated November 8, 2016 No. 03-03-RZ/65124.