Depreciation on fixed assets is charged even when it is not used to generate income

Suspension of depreciation

Sometimes depreciation may be suspended. In particular, depreciation is not charged:

• for a period of conservation of a fixed asset lasting more than three months;
• for a period of restoration (reconstruction, repair or modernization) of a fixed asset lasting more than 12 months.

This procedure is provided for in paragraphs 23 and 26 of PBU 6/01.

A complete list of cases in which depreciation is suspended is presented in the table.

Accounting

Depending on the nature of the use of a fixed asset, depreciation accrued on it is included either in expenses for ordinary activities, or in other expenses, or in capital investments. In this case the wiring is carried out:

Debit 20 (23, 25, 44...) Credit 02 – depreciation has been accrued on fixed assets used in the production of goods (performance of work, provision of services) or in trading activities;

Debit 08 Credit 02 – depreciation was accrued on a fixed asset used in the creation (modernization, reconstruction) of another non-current asset;

Debit 91-2 Credit 02 - depreciation has been accrued on a fixed asset used in other types of activities (for example, on a leased fixed asset, if leasing property is not the main activity of the lessor, or on a non-production object).

Such postings must be made monthly (clause 21 of PBU 6/01).

Property not subject to depreciation

Not all property that meets the criteria of being depreciable can be depreciated.
Exceptions to the general rule are established by paragraph 2 of Article 256 of the Tax Code of the Russian Federation. The cost of such property is not taken into account when calculating income tax (except for books, brochures and other publications, the cost of which is included in other expenses associated with production and sales). The list of assets for which depreciation cannot be calculated is given in the table. Situation: is it possible to charge depreciation on external improvement objects (sidewalks, external lighting, flower beds and flowerpots) in tax accounting?

No you can not.

The concept of “object of external improvement” is not defined in tax legislation. The regulatory authorities explain that external improvement objects mean objects that:

• not related to the commercial activities of the organization;

• do not relate to any industrial buildings and structures;

• are designed to create a comfortable, aesthetically designed space on the territory of the organization.

Expenses associated with the improvement of the territory (including depreciation deductions for external improvement objects) do not meet the criteria of paragraph 1 of Article 252 of the Tax Code of the Russian Federation, and therefore they do not reduce the tax base for income tax. This is stated in letters of the Ministry of Finance of Russia dated October 18, 2011 No. 03-07-11/278, dated October 30, 2007 No. 03-03-06/1/745, UMNS of Russia for the Moscow Region dated December 8, 2003. No. 04-24/AA885.

In letters dated January 30, 2008 No. 03-03-06/1/63, dated May 30, 2006 No. 03-03-04/1/487, dated April 25, 2005 No. 03-03-01-04 /1/201 The Russian Ministry of Finance denies the possibility of calculating depreciation on such external improvement objects as:

• paved areas around shops and industrial enterprises;

• loading and unloading areas;

• parking for trucks and cars;

• driveways;

• sidewalks and pedestrian paths;

• external electric lighting (including installations of external lighting);

• lawns, flower beds, trees and shrubs;

• stairs, decorative fountains, sculptures, flowerpots, etc.

The financial department argues its position by the fact that the initial cost of fixed assets with the construction of which these objects are associated, the costs of their arrangement do not increase. Consequently, such objects do not meet the criteria of fixed assets (clause 1 of Article 257 of the Tax Code of the Russian Federation), but are independent types of depreciable property that are not subject to depreciation. Some courts support this point of view (see, for example, decisions of the Federal Antimonopoly Service of the East Siberian District dated April 20, 2006 No. A58-5090/05-F02-1684/06-S1, dated March 10, 2006 No. A33-22400/ 04-С3-Ф02-858/06-С1).

It should be noted that in some business situations, the Russian Ministry of Finance agrees with the possibility of depreciation of external improvement objects or with the inclusion of improvement costs in the initial cost of other fixed assets. In particular, the financial department allows the calculation of depreciation on objects that have signs of external improvement objects, but at the same time meet the criteria of a fixed asset (clause 1 of Article 257 of the Tax Code of the Russian Federation). For example, this is possible in organizations whose activities are related to the organization of recreation (sanatoriums, boarding houses, etc.), exhibitions and cultural events. Such organizations can qualify expenses for improvement and landscaping of their territory as expenses directly related to ensuring normal recreational conditions, that is, with activities aimed at generating income. When calculating income tax, these costs are included in other expenses (subclause 49, clause 1, article 264 of the Tax Code of the Russian Federation). If in the course of improvement work objects are created that meet the criteria of fixed assets (for example, sports grounds, tennis courts, car parking lots, etc.), the cost of these objects can be depreciated on a general basis. Such clarifications are contained in letters of the Ministry of Finance of Russia dated August 3, 2012 No. 03-03-06/1/386, dated July 7, 2009 No. 03-03-06/1/443, dated December 4, 2008 No. 03- 03-06/4/94.

In addition, depreciation of external improvement objects or inclusion of the costs of their creation in the initial cost of other fixed assets is possible if these objects are created due to legal requirements, as well as regulatory and technical documents in the field of industrial safety. In certain sectors of the economy, the formation of such objects is directly the responsibility of organizations. Therefore, they can also be depreciated (letter of the Ministry of Finance of Russia dated June 19, 2008 No. 03-03-06/1/362). Arbitration practice confirms this conclusion (see, for example, decisions of the FAS Moscow District dated April 10, 2008 No. KA-A40/2263-08, dated September 27, 2007 No. KA-A40/9456-07, dated March 20, 2006 No. KA-A40/1706-06, Volga-Vyatka District dated October 22, 2008 No. A28-1630/2008-43/29, East Siberian District dated April 20, 2006 No. A58-5090/05-F02- 1684/06-C1, North-Western District dated July 18, 2005 No. A56-11749/04).

Advice: there are arguments that allow you to depreciate external improvement objects in some other situations. But to use these arguments, the organization will most likely have to go to court.

Sometimes landscaping costs are inextricably linked with the construction of fixed assets. This situation may arise if the building construction project initially included the creation of external improvement facilities. For example, when external landscaping is an element of the unified design of the building being built or when the contract stipulates that the contractor, during the construction of the building, must asphalt the adjacent area. Such expenses do not lead to the creation of independent external improvement objects, but are included in the initial cost of buildings, structures, etc. being erected. After these objects are put into operation, the organization’s expenses for improvement will gradually reduce taxable profit through depreciation. When considering such situations, some courts side with organizations (see, for example, decisions of the FAS Moscow District dated January 21, 2009 No. KA-A40/12910-08, Northwestern District dated July 13, 2009 No. A56-48313/ 2008, dated June 7, 2004 No. A56-28373/03).

In addition, sometimes the calculation of depreciation on external improvement objects is considered legal due to the ambiguous wording contained in subparagraph 4 of paragraph 2 of Article 256 of the Tax Code of the Russian Federation. Based on its literal interpretation, we can conclude that it is prohibited to depreciate only forestry and road facilities built with the involvement of budgetary (targeted) funding, as well as specialized shipping facilities and other similar objects. Since the Tax Code of the Russian Federation does not contain other restrictions regarding the depreciation of external improvement objects, some courts make decisions in favor of organizations precisely for this reason (see, for example, resolutions of the Federal Antimonopoly Service of the Moscow District dated October 12, 2010 No. KA-A40/12233-10 , dated April 2, 2010 No. KA-A40/2846-10, Northwestern District dated June 1, 2009 No. A56-33207/2008). For more information about this, see Is it possible to charge depreciation in tax accounting on objects such as asphalt (concrete, sidewalk) pavements that were created without attracting budget (targeted) funding.

Situation: is it possible in tax accounting to charge depreciation on objects such as asphalt (concrete, sidewalk) pavements that were created without attracting budgetary (targeted) funding?

Yes, it is possible if the arrangement of such facilities is required by law.

As a general rule, regardless of the sources of financing, asphalt (concrete, sidewalk) coatings are classified as external improvement objects, and, therefore, depreciation is not accrued on them (subclause 4, clause 2, article 256 of the Tax Code of the Russian Federation). This point of view is reflected in letters of the Ministry of Finance of Russia dated January 30, 2008 No. 03-03-06/1/63, dated October 30, 2007 No. 03-03-06/1/745, dated May 30, 2006 No. 03 -03-04/1/487, dated April 25, 2005 No. 03-03-01-04/1/201 and dated October 13, 2004 No. 03-03-01-04/1/73.

At the same time, for certain sectors of the economy, the arrangement of production sites with asphalt and other types of coatings near production facilities is mandatory by virtue of legislation, as well as regulatory technical documents in the field of industrial safety. In such cases, the organization can charge depreciation on them. This conclusion was made in the letter of the Ministry of Finance of Russia dated June 19, 2008 No. 03-03-06/1/362.

Advice: there are arguments that allow depreciation to be calculated on asphalt (concrete, sidewalk) pavements created without the involvement of budgetary funds, regardless of whether their arrangement is stipulated by legal norms or not. They are as follows.

Asphalt (concrete, sidewalk) coatings are classified as road facilities. A literal reading of subclause 4 of clause 2 of Article 256 of the Tax Code of the Russian Federation allows us to conclude that if budgetary or other targeted funding was not used during the construction of road facilities, then depreciation can be calculated on such facilities. The main thing is that the development of such facilities is connected with activities aimed at generating income (clause 1 of Article 252 of the Tax Code of the Russian Federation). In arbitration practice there are examples of court decisions that confirm the legality of this approach (see, for example, decisions of the Federal Antimonopoly Service of the North-Western District dated June 1, 2009 No. A56-33207/2008, dated January 14, 2008 No. A56-4910/2007 , dated July 18, 2005 No. A56-11749/04 and dated October 25, 2004 No. A56-32626/03, Volga-Vyatka District dated October 22, 2008 No. A28-1630/2008-43/29, Moscow District dated July 23, 2008 No. KA-A40/6654-08, Ural District dated June 26, 2008 No. F09-4500/08-S3, Volga District dated June 13, 2012 No. A55-19091/2011).

In addition, an organization can include the following objects (worth more than 100,000 rubles) as part of depreciable property:

• as a structure;

• as capital investments in leased fixed assets.

Hard decorative coatings can be taken into account as structures for the following reasons. Firstly, they improve access to the organization, help attract additional customers, and therefore have a positive effect on increasing sales. Secondly, the presence of a hard surface allows you to reduce loading and unloading time, which also increases business efficiency. It follows from this that the hard surface is used in activities related to generating income and corresponds to the definition of depreciable property specified in paragraph 1 of Article 256 of the Tax Code of the Russian Federation. The basis for calculating depreciation in this case is paragraph 1 of paragraph 1 of Article 256 of the Tax Code of the Russian Federation.

If the hard surface is built on leased land, the costs of its construction can be classified as capital investments in leased fixed assets (see, for example, letter of the Federal Tax Service of Russia for Moscow dated March 16, 2006 No. 18-11/1/20791). At the same time, the land lease agreement (additional agreement to it) must reflect the consent of the lessor (tenant's right) to produce inseparable improvements in the form of asphalt (concrete, paving) covering (paragraph 1, paragraph 1, article 256 of the Tax Code of the Russian Federation, article 615 Civil Code of the Russian Federation). In addition, such an agreement (additional agreement) must provide that the lessor does not reimburse the tenant for the cost of capital investments (paragraph 4, paragraph 1, article 258 of the Tax Code of the Russian Federation, article 623 of the Civil Code of the Russian Federation). The basis for calculating depreciation in this case is paragraph 4 of paragraph 1 of Article 256 of the Tax Code of the Russian Federation (see, for example, letters of the Federal Tax Service of Russia for Moscow dated December 14, 2007 No. 20-12/119684, dated March 17, 2006 No. 18-11/20791). For information on the use of bonus depreciation when depreciating permanent improvements to leased property, see How to Calculate Depreciation on Leased Fixed Assets.

It is possible that during the audit the tax inspectorate will not agree with the inclusion of expenses for the installation (laying) of hard surfaces in the calculation of taxable profit. In this case, the organization will have to defend its position in court.

An example of reflection in accounting and taxation of an asphalt parking lot equipped on a leased territory. The tenant organization applies the general taxation system

In January, Torgovaya LLC (tenant) entered into a lease agreement with Alpha LLC (lessor) for the land plot on which the shopping complex is located. The lease agreement is valid for 25 years.

The terms of the agreement provide:

• The tenant has the right to carry out any work on the leased area only with the consent of the landlord;

• The landlord does not reimburse the tenant's investment in the rental property.

In April, Hermes decided to equip an asphalt parking lot on the leased site. To do this, he concluded an additional agreement with Alpha to the contract, which reflected the lessor’s consent to arrange the parking lot. The asphalt work on the parking lot was completed by a contractor in May. The cost of the work amounted to 2,360,000 rubles. (including VAT – 360,000 rubles).

The Hermes accountant was guided by the explanations of the Federal Tax Service of Russia for Moscow and included an equipped parking lot as part of fixed assets.

According to the Classification approved by Decree of the Government of the Russian Federation of January 1, 2002 No. 1, this object is included in the fifth depreciation group with a useful life from 7 to 10 years inclusive.

The object was accepted for accounting and tax accounting at an initial cost of RUB 2,000,000. with a useful life of 10 years.

Hermes determines income and expenses for calculating income tax using the accrual method. Depreciation is calculated using the straight-line method.

The following entries were made in the accounting records of Hermes.

In May:

Debit 08 Credit 60 – 2,000,000 rub. – reflects the cost of work on equipping the parking lot;

Debit 19 Credit 60 – 360,000 rub. – VAT is reflected on the cost of work on equipping the parking lot;

Debit 60 Credit 51 – 2,360,000 rub. – paid for the work performed by the contractor;

Debit 01 Credit 08 – 2,000,000 rub. – an equipped parking lot was put into operation;

Debit 68 subaccount “Calculations for VAT” Credit 19 – 360,000 rubles. – VAT accrued when performing work on parking lot equipment is accepted for deduction.

Since June, for 10 years, the Hermes accountant has monthly calculated depreciation on a commissioned fixed asset in the amount of 16,667 rubles:

Debit 44 Credit 02 – 16,667 rub. – depreciation has been calculated for the parking lot for the current month.

In tax accounting, monthly starting from June, the accountant includes in expenses the amount of accrued depreciation in the amount of 16,667 rubles.

Situation: is it possible to calculate depreciation on a fence (fencing the territory of an organization) in tax accounting?

Yes, you can.

The fence cannot be classified as an external improvement object (depreciation for which is not charged (subclause 4, clause 2, article 256 of the Tax Code of the Russian Federation)), since this type of property is a structure that ensures the safety of the organization’s property. In particular, the fence is mentioned in the All-Russian Classifier of Fixed Assets (OKOF), approved by Decree of the State Standard of Russia dated December 26, 1994 No. 359, in the subsection “Structures” (codes 12 4540000, 12 3697000).

Expenses for ensuring the safety of the organization's property can be considered economically justified (clause 1 of Article 252 of the Tax Code of the Russian Federation). Although they do not directly generate income, they provide the opportunity to receive it and minimize possible losses (damage and loss of the organization’s property). Therefore, take into account the depreciation accrued on the fence enclosing the organization’s territory as expenses that reduce income tax.

Situation: is it possible to calculate depreciation on service apartments in tax accounting?

No you can not.

The organization does not have the right to depreciate apartments purchased for official use. This is due to the fact that fixed assets that can be depreciated are understood as property used as means of labor for the production and sale of goods or management of an organization (Articles 256, 257 of the Tax Code of the Russian Federation). Apartments do not fit this definition and are not used for generating income. Therefore, depreciation cannot be charged on them. This position is reflected in the letter of the Ministry of Finance of Russia dated November 24, 2014 No. 03-03-06/2/59534.

At the same time, representatives of the Russian Ministry of Finance explain that service apartments can be taken into account as part of service households. A feature of the taxation of such objects is a separate definition of the tax base (separate from the tax base for the main type of activity). This is stated in Article 275.1 of the Tax Code of the Russian Federation.

As a rule, service apartments do not generate income, so their maintenance is unprofitable. In fact, such losses can reduce the taxable profit received from the main activity. But for this, certain requirements must be met. In particular, the conditions for renting service apartments (including the cost of rent and the amount of expenses for maintaining the apartment) must be comparable to the conditions under which similar premises are rented out by specialized organizations (hotels, hostels).

If these requirements are not met, the loss can be repaid within 10 years, but only from the profit received by the service business. It is obvious that service apartments that do not generate income do not meet the established criteria. Therefore, organizations will not be able to take advantage of the recommendations of the Russian Ministry of Finance in practice.

Situation: is it possible to calculate depreciation for non-production objects (household appliances, interior items, aquariums, flowerpots, exercise equipment, etc.) in tax accounting? The standard service life of objects is more than 12 months.

No you can not.

An organization’s property is considered depreciable if it simultaneously satisfies the following requirements:

• is owned by the organization (with some exceptions listed in paragraph 1 of Article 256 of the Tax Code of the Russian Federation);

• used to generate income;

• useful life exceeds 12 months;

• the value of the property exceeds RUB 100,000. (for facilities put into operation starting from January 1, 2016).

Such rules are established by paragraph 1 of Article 256 of the Tax Code of the Russian Federation.

The use of an object to generate income is a key criterion for recognizing it as depreciable property in tax accounting. Objects for non-production purposes (such as sculptures, paintings, aquariums, flowerpots) do not meet this criterion. From this point of view, it is impossible to include them in fixed assets and charge depreciation on them (clause 1 of Article 256 of the Tax Code of the Russian Federation). This conclusion is indirectly confirmed by the letter of the Ministry of Finance of Russia dated April 3, 2007 No. 03-03-06/1/210. This position is also shared by some courts (see, for example, decisions of the Federal Antimonopoly Service of the Moscow District dated November 10, 2005 No. KA-A40/10783-05, dated August 20, 2002 No. KA-A41/5338-02).

Advice: there are arguments that allow organizations to charge depreciation on some non-production items. They are as follows.

The operation of fixed assets for non-productive purposes may also be associated with activities aimed at generating income. For example, when such objects are used for management purposes (clause 1 of Article 257 of the Tax Code of the Russian Federation). In this case, the costs of their acquisition may reduce taxable profit, including through depreciation. In the resolutions of the Federal Antimonopoly Service of the Ural District dated September 24, 2007 No. Ф09-7797/07-С3, Volga District dated April 27, 2007 No. A55-11750/06-3, Moscow District dated September 11, 2006 No. KA-A40/ 8421-06 confirms the organization’s right to depreciate non-production objects (TVs, VCRs, aquariums, furniture, watches, refrigerators, etc.) that were used for management purposes.

In addition, a number of court decisions have concluded that costs for the acquisition of non-production objects can reduce taxable profit as expenses for ensuring normal working conditions (subclause 7, clause 1, article 264 of the Tax Code of the Russian Federation) (see, for example, resolutions FAS Moscow District dated January 26, 2009 No. KA-A40/13294-08, Volga District dated August 28, 2008 No. A55-18124/07, dated September 5, 2006 No. A12-2078/2006-C29, West Siberian District dated April 2, 2007 No. F04-1822/2007(32980-A27-40), Moscow District dated December 27, 2006 No. KA-A40/12681-06, East Siberian District dated May 2, 2006 No. А74-3299/05-Ф02-1838/06-С1). Recognizing that the expenses for the purchase of television and radio equipment, kitchen utensils, billiards and other non-production objects were justified, the courts proceeded from the organization’s obligation to provide sanitary, medical and preventive services to employees. For these purposes, the organization must equip sanitary facilities, premises for eating, rest rooms, etc. This is stated in Article 223 of the Labor Code of the Russian Federation. Consequently, such expenses can be recognized as economically justified and taken into account when calculating income tax (clause 1 of Article 252 of the Tax Code of the Russian Federation).

If an organization decides in court to defend its right to reduce taxable profit at the expense of the cost of non-production objects, it is necessary to obtain supporting documents. The organization’s obligation to provide employees with normal working conditions, equip living quarters, and acquire social and cultural facilities must be enshrined in a local regulatory act (for example, a collective agreement, labor regulations, order of the manager, etc.).

OS is not used in activity

Situation: is it necessary to charge depreciation in accounting for a fixed asset that is registered but is not actually used?

As a general rule, if property is accounted for on account 01 (it is a fixed asset), then regardless of whether it is used in the organization’s activities or not, charge depreciation on it. An exception, in particular, is the conservation of a fixed asset for a period of more than three months and other cases.

The organization may not start using the main tool immediately. In this case, it is accepted for accounting in a separate subaccount to account 01, which may be called, for example, “Fixed assets in stock.” This procedure applies to all fixed assets: movable (acquired, created, requiring installation) and real estate (from the moment of filing documents for state registration of ownership). This follows from subparagraph “a” of paragraph 4 of PBU 6/01, paragraph 20 of the Methodological Instructions approved by Order of the Ministry of Finance of Russia dated October 13, 2003 No. 91n and the Instructions for the Chart of Accounts.

Depreciation in accounting must be calculated starting from the month following the month in which the property was accepted for accounting as a fixed asset (clause 21 of PBU 6/01). Thus, after reflecting the received property on account 01, the organization must begin to depreciate it. This must be done regardless of whether the organization has started using this object or not.

Reflect the amounts of accrued depreciation on account 02 “Depreciation of fixed assets” in correspondence with expense accounts. Select an account for accounting expenses depending on the reason why the fixed asset is not used (production necessity, technological features, planned delay in operation).

Accrue depreciation as part of expenses for ordinary activities (accounts 20, 08, 23, 25, 44...).

For the convenience of generating and tracking information on the amounts of accrued depreciation for fixed assets that are not used in activities, open a separate sub-account for account 02 “Depreciation of fixed assets”. It may be called, for example, “Depreciation of fixed assets in inventory.” In accounting, reflect depreciation on these objects by posting:

Debit 20 (23, 25, 44, ...) Credit 02 subaccount “Depreciation of fixed assets in inventory” - depreciation has been accrued on fixed assets that are not yet used in activities.

At the beginning of actual operation, write off the amount of accrued depreciation:

Debit 02 subaccount “Depreciation of fixed assets in inventory” Credit 02 subaccount “Depreciation of fixed assets in operation” - the amount of previously accrued depreciation was transferred to the subaccount for depreciation of fixed assets in operation.

This procedure is based on the provisions of paragraph 21 of PBU 6/01, paragraphs 9 and 18 of PBU 10/99.

An example of reflecting in accounting depreciation of fixed assets that are not actually used

One of the activities of Alpha LLC is the hotel business. In March, the organization purchased furniture for a room on the fourth floor at one of the hotels. The cost of the headset is 118,000 rubles. (including VAT – 18,000 rubles). The first reservation for the room was received in May.

For accounting and tax purposes, the useful life of the furniture was set at six years (72 months). According to the accounting policy, depreciation on fixed assets is calculated using the straight-line method.

The accountant calculated the annual depreciation rate for furniture as follows: (1: 6 years) × 100% = 17%.

The monthly depreciation amount was: (RUB 118,000 – RUB 18,000) × 17%: 12 months. = 1417 rub.

In the Alpha working chart of accounts, the following subaccounts are approved for account 01 – “Fixed assets in stock”, “Fixed assets in operation”. To account 02 – “Depreciation of fixed assets in operation”, “Depreciation of fixed assets in inventory”.

The accountant made entries in the accounting.

In March:

Debit 08 Credit 60 – 100,000 rub. (RUB 118,000 – RUB 18,000) – the cost of the purchased furniture set is taken into account;

Debit 19 Credit 60 – 18,000 rub. – input VAT is taken into account on the cost of the purchased furniture set;

Debit 01 subaccount “Fixed assets in stock” Credit 08 – 100,000 rub. – the cost of the purchased furniture set is reflected as part of fixed assets;

Debit 68-2 Credit 19-3 – 18,000 rubles. – accepted for deduction of input VAT on purchased furniture.

In April:

Debit 26 Credit 02 subaccount “Depreciation of fixed assets in inventory” – 1417 rubles. – depreciation was accrued on furniture for April.

In May:

Debit 01 subaccount “Fixed assets in operation” Credit 01 subaccount “Fixed assets in stock” – 100,000 rubles. – the furniture set is transferred to the composition of fixed assets actually used;

Debit 02 subaccount “Depreciation of fixed assets in inventory” Credit 02 subaccount “Depreciation of fixed assets in operation” - 1417 rubles. – the amount of previously accrued depreciation was transferred to the subaccount for accounting for depreciation on fixed assets in operation;

Debit 26 Credit 02 subaccount “Depreciation of fixed assets in operation” – 1417 rubles. – depreciation was accrued on furniture for May.

In tax accounting, the accountant also began calculating depreciation in April.

Depreciation of fixed assets in the absence of income from use

The Ministry of Finance of Russia, in letter No. 03-03-06/1/34012 dated April 27, 2020, clarifies the calculation of depreciation for income tax purposes in relation to fixed assets in the absence of income from their use.

Depreciable property

The costs associated with production and sales include the amount of depreciation accrued:

• on fixed assets for production purposes;
• on intangible assets that are used in the production activities of the company.

Property with a useful life of more than 12 months and an original cost of more than 100,000 rubles (Clause 1 of Article 256 of the Tax Code of the Russian Federation) is considered depreciable.

The amount of depreciation that should be charged for fixed assets and intangible assets depends both on the service life of the depreciable property and on its original cost.

What is not subject to depreciation

Depreciation in tax accounting is calculated in the manner prescribed by Articles 256 - 259.3 of the Tax Code of the Russian Federation.

Paragraph 3 of Article 256 of the Tax Code excludes fixed assets from depreciable property:

• transferred by decision of the organization’s management to conservation for a period of more than three months;
• which, by decision of the management of the organization, are undergoing reconstruction and modernization for a period of more than 12 months, with the exception of cases where fixed assets in the process of reconstruction or modernization continue to be used by the taxpayer in activities aimed at generating income.

When an object of fixed assets is re-mothballed, depreciation on it is accrued in the order that was in effect before the moment of its mothballing.

As officials explain, this norm (clause 3 of Article 256 of the Tax Code of the Russian Federation) does not require stopping the calculation of depreciation in the absence of income from the use of depreciable property for any period of time.

Thus, the Tax Code does not allow arbitrary exclusion of property from depreciation, including based on the criterion of temporary non-receipt of income.

Difference between tax and accounting

In both tax and accounting accounting, depreciation is calculated on fixed assets. However, some fixed assets do not need to be depreciated. In tax accounting, these are objects that are not depreciable. For accounting purposes, such property is listed in PBU 6/01 “Accounting for fixed assets.”

The list of fixed assets for which depreciation is not charged in accounting and tax accounting differs. Here is a comparison table:

OS received free of charge

The organization has the right to depreciate fixed assets received free of charge (clause 17 of PBU 6/01). When such objects are received, their market value is taken into account in account 98 “Deferred income”.

As the value of a gratuitously received fixed asset is transferred to expenses, other income is reflected in accounting in an amount equal to the accrued depreciation (clause 29 of the Methodological Instructions, approved by Order of the Ministry of Finance of Russia dated October 13, 2003 No. 91n). In this case, two transactions are performed simultaneously:

Debit 20 (08, 23, 25, 44, 91...) Credit 02 – depreciation has been accrued on a fixed asset received free of charge;

Debit 98 Credit 91-1 - other income is recognized in the amount of depreciation accrued on a fixed asset received free of charge.

Depreciation methods

In accounting, depreciation can be calculated:

• in a linear way;
• reducing balance method;
• the method of writing off the cost by the sum of the numbers of years of useful life;
• by writing off the cost in proportion to the volume of products (works).

Fix the chosen method of calculating depreciation in the accounting policy (clause 7 of PBU 1/2008). An organization has the right to apply different methods of calculating depreciation to different groups of homogeneous fixed assets. It is not possible to change the method of calculating depreciation for a specific object after it has been put into operation.

This procedure is provided for in paragraph 18 of PBU 6/01.

Procedure for calculating depreciation

Depreciation is calculated monthly at the end of the reporting period. Operations are carried out until the cost of the fixed asset is completely transferred to the enterprise's expenses. The amount of deductions changes if the cost changes due to additional equipment. When written off or sold, the amount of depreciation that is not fully included in expenses is taken into account as expenses.

The amount of monthly write-off is determined depending on the method adopted in accounting and taxation. The method established for a particular equipment or group of objects cannot change during its entire useful life.

Used OS

Situation: how to calculate depreciation in accounting for fixed assets that were used by the previous owner?

An organization can charge depreciation on fixed assets that were in use by previous owners, taking into account the period of their operation by the previous owner.

PBU 6/01 does not contain special rules for calculating depreciation for objects that were in operation by previous owners. At the same time, the organization has the right to determine the useful life of this object based on its expected service life. This period can be determined based on an assessment of the technical condition of the object, taking into account its actual wear and tear. Such rules are established by paragraph 20 of PBU 6/01.

For accounting purposes, an organization can determine the useful life of fixed assets according to the Classification approved by Decree of the Government of the Russian Federation of January 1, 2002 No. 1. This document does not give the organization the right to reduce the useful life in comparison with the periods established for a particular depreciation group. In this case, state in the accounting policy that when commissioning fixed assets that were in use by previous owners, their useful life is determined taking into account the period of their operation by the previous owner.

About calculating depreciation on an unused fixed asset

07.06.2018

The property acquired by the organization was put into operation and used in business activities. Due to the lack of orders, the need for it temporarily disappeared, and therefore the equipment was put into storage and stored there for a long period (more than 8 months). Is the organization obliged to transfer it to conservation and stop accruing depreciation for profit tax purposes?

Three options

Analyzing the answers to the question what consequences arise in tax accounting in connection with the temporary non-use of depreciable property, you come to the conclusion that there are three points of view:

– objects can be depreciated and depreciation amounts can be taken into account as expenses; – objects should continue to be depreciated, but the depreciation amounts do not reduce the income tax base, since the expenses are not economically justified; – the object must be transferred to conservation and excluded from the depreciable property.

Let's consider how supporters of each of these points of view argue their position, and also try to give recommendations to tax accounting practitioners.

Option 1: calculate depreciation and take it into account in expenses

The following arguments are given in support of this option. According to paragraph 3 of Art. 256 Tax Code of the Russian Federation

fixed assets transferred
by decision of the organization’s management
to conservation for a duration of more than three months are excluded from depreciable property.
In paragraph 2 of Art.
322 of the Tax Code of the Russian Federation states that depreciation is not charged for fixed assets transferred
by decision of the organization’s management
to conservation for a period of more than three months.
Chapter 25 of the Tax Code of the Russian Federation
does not contain provisions obliging the transfer of objects to conservation. Thus, the head of the organization has the right, but not the obligation, to make a decision to transfer the OS object to conservation. If this decision is not made, the organization must continue to depreciate the property and record the depreciation amounts as expenses.

The financial and tax authorities support this point of view. In particular, in letters of the Ministry of Finance of Russia dated February 28, 2013 No. 03-03-10/5834

and
dated 03/25/2013 No. 03-03-06/2/9224
states: the list of fixed assets excluded from depreciable property is established by clause 3 of Art.
256 Tax Code of the Russian Federation. However, these provisions do not provide for a requirement to stop accruing depreciation if there is no income from the use of depreciable property
for any period of time. The Tax Code of the Russian Federation does not provide for the arbitrary exclusion of property from depreciable property, including based on the criterion of temporary non-receipt of income.

The same conclusion is contained in the Letter of the Federal Tax Service of Russia dated April 12, 2013 No. ED-4-3/ [email protected]

, which additionally contains a reference to
the Resolution of the Federal Antimonopoly Service of the North-West District dated April 13, 2009 in case No. A75-5350/2008
.

For your information:

during the period when property is temporarily not used in the production of goods (works, services) for technological or economic reasons, depreciation does not stop (
Letter of the Ministry of Finance of Russia dated January 25, 2011 No. 03-03-06/1/24
).

In Letter dated 06/07/2013 No. 03-03-06/1/21209

The Ministry of Finance, answering the question whether it is necessary to exclude from the expenses that reduce the income tax base the amount of accrued depreciation on an unused building until its sale (the branch is closed, the building has not been transferred to conservation), indicated: cases of exclusion of fixed assets from the depreciable assets are determined by a closed list established by clause 3 of Art. 256 Tax Code of the Russian Federation.

Option 2: depreciation is accrued, but is not taken into account in expenses

Proponents of this option point out that depreciation is terminated in the event of disposal or complete write-off of the cost of fixed assets or exclusion of an object from the depreciable property. Temporary non-use of an object, as mentioned above, does not entail its exclusion from depreciable property, therefore it is necessary to depreciate fixed assets, but depreciation amounts cannot be taken into account when determining the income tax base, since such costs are unreasonable.

Despite the fact that the regulatory authorities have not directly stated this position, officials proceed from the fact that expenses in the form of depreciation amounts must be economically justified. In particular, in Letter dated April 12, 2018 No. 03-03-06/1/24220

The Ministry of Finance emphasized:

– exclusion from the composition of depreciable property of fixed assets in reserve, Ch. 25 Tax Code of the Russian Federation

not provided;
– the amounts of accrued depreciation are included in expenses associated with production and sales ( clause 3, clause 2, article 253 of the Tax Code of the Russian Federation
);
– in this case, expenses must comply with the requirements established by Art.
252 Tax Code of the Russian Federation .

For your information:

objecting to this approach, supporters of the first point of view refer to the fact that depreciation amounts for unused property are not included in
Art.
270 of the Tax Code of the Russian Federation , containing a list of expenses not taken into account for profit tax purposes.
We believe that this argument is rather weak, since the said list is open due to the presence of clause 49
- other expenses that do not meet the criteria specified in clause 1 of Art. 252 of the Tax Code of the Russian Federation.

Option 3: non-use of an object for more than three months obliges it to be transferred to conservation and excluded from depreciable property

The following arguments are given in favor of this option. From the definitions of the concepts “depreciable property” and “fixed assets” it is clear that objects must be used to generate income

(
clause 1 of article 256
,
clause 1 of article 257 of the Tax Code of the Russian Federation
).
Accordingly, if an object is not used in production activities, it must be removed from depreciable property. If an OS object is suitable for further operation, but is temporarily not used in production activities, it must be transferred to conservation. Moreover, the obligation of conservation, according to the Federal Tax Service for Moscow, arises even in relation to an advertising installation - depreciation is not accrued from the moment of dismantling until the moment of new installation ( Letter dated December 1, 2009 No. 16-15/125953
).

What should I do?

In our opinion, the wording of paragraph 3 of Art. 256

and
paragraph 2 of Art.
322 of the Tax Code of the Russian Federation (on the transfer of fixed assets to conservation by decision of the organization’s management) does not allow us to agree with the third option and consider that the taxpayer in any case is obliged to stop accruing depreciation on temporarily unused objects.

For your information:

The tax inspector's arguments about the taxpayer's obligation to mothball wells that have been inactive for more than six months are not accepted, since the current legislation does not establish the company's obligation to carry out mothballing and the timing of its implementation has not been determined (
Resolution of the Federal Antimonopoly Service of the Moscow Region dated October 27, 2010 No. KA-A40/ 11434-10-2 in case No. A40-113713/09-118-872
).

However, we do not at all call for ignoring the provisions of paragraph 1 of Art. 256

and
paragraph 1 of Art.
257 of the Tax Code of the Russian Federation stating that fixed assets (as part of depreciable property) must be used in activities aimed at generating income.
Long-term non-use of
fixed assets (for more than three months) will inevitably lead to disputes with tax authorities, who will insist that expenses in the form of accrued depreciation amounts are unreasonable (
clause 1 of Article 252 of the Tax Code of the Russian Federation
).
In this regard, the organization should be prepared to explain why the decision to mothball was not made
. If there is an answer to this question, the taxpayer will be able to prove the illegality of the controllers’ claims. Otherwise, the outcome of the tax dispute will depend on the subjective opinion of specific judges, who can make a decision on formal grounds, giving preference to one of the options:

– temporary non-use of property does not entail the cessation of depreciation, expenses are justified; – expenses in the form of depreciation amounts for objects not used to generate income do not comply with the requirements of Art. 252 Tax Code of the Russian Federation

.

In our opinion, the provisions of Ch. 25 Tax Code of the Russian Federation

about fixed assets, depreciation (and not only) must be applied consistently and in aggregate, and not in isolation from each other. We believe you can use the following step-by-step scheme.

Introductory:

the organization acquired (created) property, the useful life of which exceeds 12 months, and the initial cost is higher than 100,000 rubles.

Step 1:

Is the object intended for use in activities aimed at generating income? If the answer to the question is negative, the object is not included in the depreciable property, SPI is not established, and depreciation is not accrued. If the answer is positive, proceed to step 2.

Step 2:

Has the facility been put into operation? A positive answer to the question allows you to calculate depreciation and take these expenses into account for tax purposes. Otherwise, no depreciation is charged (no expense is incurred).

In relation to previously commissioned facilities

, the use of which has been discontinued, the reasons and expected period of non-use of the object should be assessed and one of three
informed
decisions should be made:

– we transfer the object to conservation; – we continue to charge depreciation, but do not take such amounts into account as tax expenses; – we continue to accrue depreciation, the amounts of which are taken into account when determining the income tax base.

We emphasize that the choice of one or another option is made in relation to each specific object (possibly several objects), but not as a whole for depreciable property. In other words, one of the proposed options cannot be chosen as a universal one and fixed in the accounting policy of the organization. Universality is inappropriate in this case, since it cannot be justified.

Here are a few examples to provide some guidance.

We believe that the latter situation requires additional explanation. As stated above, there is a Letter from the Ministry of Finance of Russia dated 06/07/2013 No. 03-03-06/1/21209

, which answers the question: is it possible to take into account as expenses the amount of accrued depreciation on an unused building until its sale (the organization closed the branch, but did not transfer the building to conservation).
Let's follow the logic of the officials. First, they reminded about the requirement of paragraph 1 of Art.
252 of the Tax Code of the Russian Federation that any expenses are recognized as expenses, provided that they are incurred to carry out activities aimed at generating income.
Then the letter quoted clause 1 of Art.
256 of the Tax Code of the Russian Federation , containing the definition of depreciable property.
It is further said that clause 2 of Art.
256 of the Tax Code of the Russian Federation provides a list of depreciable property that is not subject to depreciation.
In relation to other property (not specified in clause 2 of Article 256 of the Tax Code of the Russian Federation
), taxpayers are given the right to reduce its value through depreciation, which begins to accrue from the moment the facility is put into operation (the property begins to be used in the organization’s activities).
After this it is said: termination of depreciation accrual occurs in the event of physical disposal or complete write-off of the value of the depreciable property ( Articles 259.1
and
259.2 of the Tax Code of the Russian Federation
).
And finally, paragraph 3 of Art.
256 of the Tax Code of the Russian Federation establishes a closed list of cases of exclusion of fixed assets from the composition of depreciable property.

In other words, the Ministry of Finance proceeds from the fact that if an object is classified as depreciable property, the taxpayer begins to accrue depreciation from the moment of commissioning and takes these amounts into account in expenses. This continues until the value of the object is completely written off, provided that it physically exists and none of the cases mentioned in clause 3 of Art. 256 Tax Code of the Russian Federation

. It turns out that the status of depreciable property is assigned to the object almost “once and for all” and depreciation on it is a priori recognized as an economically justified expense.

Practice shows that not all tax authorities share this approach. The author cannot agree with him either. That is why, in a situation where the use of an object is stopped due to a decision to sell it, it is advisable for the organization to transfer it to conservation and stop accruing depreciation. The fact is that the object no longer satisfies the conditions of paragraph 1 of Art. 256

and
paragraph 1 of Art.
257 of the Tax Code of the Russian Federation on use in activities aimed at generating income. It is possible that judges will recognize this circumstance as decisive, which will allow them to side with the tax authority. In any case, when considering disputes about the validity of recognizing depreciation amounts as expenses, judges often take into account whether the object is intended to be used in the future in the organization’s activities.

It is possible that some taxpayers will not agree with the advisability of transferring property to conservation and, not wanting to take risks, will continue to charge depreciation on an object intended for sale, but will not take such amounts into account in tax expenses (the second of the three options mentioned above). Experts who disagree with this option appeal to the fact that it contradicts paragraph 5 of Art. 259.1 Tax Code of the Russian Federation

, according to which the accrual of depreciation stops from the 1st day of the month following the month when the cost of the depreciable property was completely written off or when this object was removed from the taxpayer’s depreciable property for any reason. In our opinion, no contradiction arises, since from the moment the use ceases and the decision to sell is made, the object can be considered to have retired from the taxpayer’s depreciable property.

Koshkina T. Yu., expert of the information and reference system “Ayudar Info”

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