Acquisition of property
A developer can obtain ownership of a land plot by purchasing it under a purchase and sale agreement, an exchange (barter) agreement, receiving it as a contribution to the authorized (share) capital, or receiving it free of charge.
In this case, the object of the transaction can only be those land plots that have undergone state cadastral registration (Clause 1, Article 37 of the Land Code of the Russian Federation).
The owner of a land plot has the right to use it in accordance with the type of permitted use of the land plot specified in the State Real Estate Cadastre (Clause 1, Article 263 of the Civil Code of the Russian Federation, Article 37 of the Town Planning Code of the Russian Federation). Types of permitted use of land plots for capital construction are established in relation to the territorial zone.
Owners should take into account that the type of permitted use of the land plot determines the possibility of reconstructing existing buildings, as well as new construction on the land plot. It influences which buildings (buildings of what functional purpose) can be created on a given land plot. So, for example, a production workshop located on a land plot with the type of permitted use “for industrial production” cannot be reconstructed into a shopping center without changing the type of permitted use of this land plot.
To summarize information on the costs of the paid acquisition of a land plot, use account 08 (sub-account 08-1 “Acquisition of land plots”) (clause 27 of the Methodological Recommendations approved by Order of the Ministry of Finance of Russia dated October 13, 2003 No. 91n).
Otherwise, the procedure for recording the acquisition of a land plot in accounting depends on who finances the construction:
- attracted investor;
- developer who acts as an investor.
If the cost of a land plot acquired for the construction of an object is reimbursed at the expense of attracted investors (shareholders), the developer does not have the right to recognize it as an object of fixed assets, since in this case it does not comply with the conditions of paragraph 4 of PBU 6/01. Reflect the acquisition of land with the following entries:
Debit 08-1 Credit 60 – a plot of land was purchased for construction at the expense of investors (shareholders).
This procedure is established by the Instructions for the chart of accounts.
After completion of construction, the developer transfers this plot to investors or shareholders in accordance with the agreement and its cost is written off as settlements with them. For more information about this, see How to register and record the disposal of land for construction.
If the construction is financed by a developer and he is constructing an object for sale, then he also does not have the right to recognize the land plot as part of fixed assets. In this case, the site does not meet the conditions provided for in paragraph 4 of PBU 6/01. Reflect the acquisition of land with the following entries:
Debit 08-1 Credit 60 – a plot of land was purchased for construction for sale.
If the construction is financed by a developer who is building a facility for himself, then he includes the land plots received into ownership (except for lands acquired for resale) in accounting as part of fixed assets if all the necessary conditions are met (clauses 4, 5 of PBU 6/ 01). This operation is reflected by transactions:
Debit 08-1 Credit 60 – acquired land for construction;
Debit 01 Credit 08-1 – the acquired land plot is reflected as part of fixed assets.
The procedure for determining the initial cost, documentation and reflection in accounting depend on the method of obtaining ownership of land plots:
- for a fee;
- under a barter agreement;
- as a contribution to the authorized capital;
- free of charge.
At the same time, take into account the peculiarities of accounting for fixed assets that require state registration.
There are no special unified forms for registering land plots in the legislation. Therefore, use for this form No. OS-1, approved by Decree of the State Statistics Committee of Russia dated January 21, 2003 No. 7.
The peculiarity of accounting for land plots is that they are not subject to depreciation, their original cost is not repaid (paragraph 5 of clause 17 of PBU 6/01).
Accounting for land plots
Now the questions arise: how can an accountant record the acquisition of land? Is land a fixed asset? Yes, it is, according to clause 5 of PBU 6/01, regardless of its cost. Even if it costs below the limit on the value of fixed assets, it will still be an operating system.
A special feature of land is that it does not lose its consumer properties over time, therefore its useful life is not set and depreciation is not charged.
Analytical accounting on account 08 must be maintained for each acquired land plot.
Like any fixed asset acquired for a fee, a land plot is taken into account at its original cost, which must include all costs directly related to its acquisition. In our case, these are the costs of a real estate agency:
Debit 08-1 “Purchase of land” Credit 60 - 152,542.37 rubles. — the services of a real estate agency for the acquisition of a land plot are reflected on the basis of an act of services rendered.
Debit 19 Credit 60 - 27,457.63 rubles. — reflects the amount of VAT claimed by the real estate agency based on the invoice.
Debit 08-1 “Purchase of land” Credit 60 - 1,600,000 rubles. — the amount of purchase of the land plot is reflected on the basis of the acceptance certificate.
Thus, in account 08-1 the initial cost of the land plot was formed in the amount of 1,752,542.37 rubles. When can an object be transferred to account 01, before or after state registration?
If the initial cost has been formed and the object is ready for operation, then, without waiting for state registration of the fixed assets, it is necessary to transfer them to fixed assets to account 01, but with allocation on a separate sub-account to the fixed assets accounting account.
Debit 01.2 “Land plots that have not passed state registration” - Credit 08-1 “Purchase of land plots” - 1,752,542 rubles. — act of transfer in form OS-1.
After passing state registration:
Debit 01.1 “Land plots” Credit 01.2 “Land plots that have not passed state registration” - 1,752,542 rubles.
Rent
The procedure for transferring land plots for lease is regulated by Article 22 of the Land Code of the Russian Federation.
A developer can lease land for construction:
- under a lease agreement with the owner of the land plot (including lands from state and municipal property);
- through the assignment of lease rights by the primary tenant (including lands from state and municipal property).
A land lease agreement concluded for a period of one year or more is subject to mandatory state registration (clause 1 of Article 164 and clause 2 of Article 609 of the Civil Code of the Russian Federation, clause 2 of Article 25 and clause 2 of Article 26 of the Land Code of the Russian Federation) . For registration of such transactions, organizations are charged a state duty of 15,000 rubles. (Subclause 22, Clause 1, Article 333.33 of the Tax Code of the Russian Federation).
Situation: is it necessary to register an agreement on the assignment of the rights of a tenant of a land plot to a third party? The lease agreement under which the rights were transferred has undergone mandatory state registration.
Yes need.
The transfer of the tenant's rights to a third party does not require the conclusion of a new lease agreement. Such a concession can be formalized, for example, by a lease agreement. This conclusion follows from paragraph 5 of Article 22 of the Land Code of the Russian Federation and paragraph 2 of Article 615 of the Civil Code of the Russian Federation.
According to paragraph 1 of Article 164 of the Civil Code of the Russian Federation, transactions with land and other real estate are subject to state registration in the cases and in the manner provided for in Article 131 of the Civil Code of the Russian Federation and Law No. 122-FZ of July 21, 1997.
The Civil Code provides that assignment of claims and transfer of debt, which are based on transactions subject to state registration, are also subject to state registration (clause 2 of Article 389 and clause 2 of Article 391 of the Civil Code of the Russian Federation).
Thus, if the lease agreement was subject to mandatory state registration, then the agreement on the assignment of the rights of the tenant of the land plot under such an agreement to a third party must also be registered. At the same time, for registering the transfer of lease rights, the organization must pay a state duty in the amount of 15,000 rubles. (Subclause 22, Clause 1, Article 333.33 of the Tax Code of the Russian Federation).
A similar point of view is expressed in the letter of the Ministry of Finance of Russia dated October 12, 2009 No. 03-05-05-03/12.
Documentation and recording of the receipt of land plots under a lease agreement occurs in the same way as for any other property. For more information about this, see How a tenant can reflect the receipt of property under a lease agreement in accounting.
The developer may enter into a lease agreement for lands that are in municipal (state) ownership. He receives this right at an auction. In this case, he bears the costs of acquiring the right to conclude such an agreement (Article 30.1 of the Land Code of the Russian Federation).
The costs of acquiring the right to conclude a lease agreement for a land plot intended for construction are included in the cost of construction as a debit to account 08 (clause 1.2 of the Regulations on Accounting for Long-Term Investments, clause 8 of PBU 6/01).
How to correctly reflect the purchase of land lease rights in accounting and tax accounting?
Question from Clerk.Ru reader Irina Nikolaevna (Chelyabinsk)
Tell me how to reflect in accounting and tax accounting the purchase of land lease rights (cost including VAT) before state registration and after state registration. When can VAT be deducted? (The right to lease land is transferred from one tenant to another for money). And is it necessary to pay land tax after registration if there is no document for the property?
According to paragraph 2 of Art. 615 of the Civil Code of the Russian Federation, the tenant has the right, with the consent of the lessor, to transfer his rights and obligations under the lease agreement to another person (release).
As a result of re-tenancy, the tenant is replaced in the obligation arising from the lease agreement, therefore re-tenancy must be carried out in compliance with the norms of civil law on the assignment of claims and transfer of debt. In accordance with Art. 389, 391 of the Civil Code of the Russian Federation, such a transaction is carried out at the will of the former and new debtors and the creditor in compliance with the requirements for the form required for the main transaction.
