tax law provides depreciation in two main ways.When used the depreciation is calculated to reflect the amount of tax which is determined in accordance with its rules and depending on the age of the object.The value of depreciation is calculated independently for each object.
According to the Tax Code, the linear method of depreciation is used by the taxpayer to objects such as buildings and structures.All these facilities are 8 - 10 group.In relation to other objects, the taxpayers have the right to use any method of calculating depreciation, however, necessary to observe the condition - the method of calculating the depreciation can not be changed during the period, which includes its accrual.For example, if the linear, the value of depreciation is calculated based on the initial value of the object or the applicable recoverable value, in the event that the revaluation of the object.When using a non-linear method, amortization is charged only on the amount of residual value, and the need to comply with the condition that the method of calculation of depreciation in this case, can be changed by the residual value of not more than 20% of the original.
In addition to these, there are also the following depreciation methods.These are: - declining balance method;- Accelerated method;- Proportional method of write-off;- Write-off method in accordance with the number of years of useful life.These methods of depreciation are also approved for use by the tax legislation of the Russian Federation, but they should be used only in cases for which they actually worked.Let's see some more data depreciation methods.
When using the declining balance methodology, the value of the annual amount of contributions is determined based on the residual value of the property.To calculate the beginning of the period is taken and the value of depreciation rates.The formula is as follows: A = Status x K x Na / 100 in which: Status - the residual value of the object of charges, K - factor of acceleration on - the depreciation rate.A feature of this method in favor of the fact that in its application the initial value can not be written off ever.The advantage is that this method can be explained by the maximum value of the value of the object at the very beginning of its operation.
When using the method of proportional write-off for years of use, the calculation formula is as follows: A = first x Toast / T x (T = 1) / 2, where: first - the initial value of the object of charges, Toast - until the endthe period of useful life in years, T - useful life.In applying this method during the current reporting period, depreciation expense each month the same amount equal to 1/12 of the annual amount.
Using the method of write-offs in proportion to the volume of production, the calculation formula takes the form: A = C / B where: A value of depreciation per unit of production, C - the initial value of the object - the calculated value of output.The advantage and the scope of this method is preferred if the wear is directly due to the intensity of use.
depreciation methods applied and provide for an accelerated process in which there is a rapid transfer of the carrying amount of the costs on.This method is usually applied in the case when a business or organization producing massive retooling of production.This methodology helps to accelerate the improvement of enterprises, and in addition, to reduce their income taxes.
