How to calculate depreciation on a building

On the balance sheet of many enterprises are listed buildings and structures for which depreciation is calculated. Accrual of depreciation for the building, which is listed in the accounting of the enterprise as fixed assets, should be in accordance with the "Regulation on the accounting of fixed assets, approved by Order of the Ministry of Finance of the Russian Federation No. 186n dated 12.24.2010.

Instruction manual

1

The useful life of fixed assets required in the calculation of depreciation deductions, set in accordance with the "Classification of fixed assets included in depreciation groups, approved by Decree of the Government of the Russian Federation No. 1 of 01.01.2002. According to it, buildings and structures belong to 8-10 groups for which the maximum useful lives are set at 20-25, 25-30 and over 30 years, respectively.

2

Regardless of the commissioning period, to calculate depreciation on buildings and structures, use the linear accrual method, in which the cost of an item of fixed assets decreases uniformly over the entire period of use. Calculate depreciation on the building in accordance with the depreciation rate, which is determined for this object, taking into account its useful life.

3

When applying the linear method, calculate the amount of depreciation charges for one month as the product of its initial cost and depreciation rate of a given object (ON): ON = (1 / STI) * 100%, where STI is the useful life.

4

So, if your company is listed as a building belonging to the 8th Classification Group, the initial cost of which is 15 million rubles, its useful life will be 25 years or 300 months. The monthly depreciation rate calculated by the formula will be: ON = (1/300) * 100% = 0.33%. In this case, the monthly amount of depreciation will be: 15 million p. * 0.33% = 49500 p.

5

In the event that the building was reconstructed and modernized, the enterprise has the right to extend its useful life, leaving it in the same depreciation group (paragraph 1 of Article 258 of the Tax Code of the Russian Federation). Moreover, it does not matter that at the time of the reconstruction, the service life of this facility was over (letter of the Ministry of Finance of Russia dated September 10, 2009 No. 03-03-06 / 2/167).

• “Classification of fixed assets included in depreciation groups”, approved by Decree of the Government of the Russian Federation No. 1 of 01.01.2002
• depreciation of premises