Accounting and tax accounting for the acquisition of real estate. Reflection in the accounting of real estate before state registration of the right of operational management. Purchase of real estate, accounting and tax accounting.
The company purchases the building at market value with payment in installments. A purchase and sale agreement was concluded with the state property management. A certificate of state registration of ownership of this building was received. When should this building be placed on the balance sheet and what accounting entries need to be made?
Accounting entries:
D 08 – K 60 (76) – reflect the purchase price of the building.
D 08 - K 68 - charge the state fee for registering ownership of the building (if the fee was paid before commissioning).
D 01 “OS, the ownership of which has not been registered” - K 08 - transfer the building to fixed assets, if this happened before registration of the right.
D 01 “OS, the ownership of which is registered” - K 01 “OS, the ownership of which is not registered” - after receiving a certificate of ownership.
The building must be reflected as part of fixed assets (i.e., accounted for in account 01) as soon as all the conditions for recognition of fixed assets are met. These conditions are listed in paragraphs 4 and 5 of PBU 6/01:
The asset will be used for more than 12 months;
Not for sale;
Capable of generating income for the organization;
Intended for use in the economic activities of an enterprise.
Those. if you bought a completely finished building in which you can conduct activities, include it in fixed assets, even if you start using it much later, if registration documents have not yet been submitted. If the building is not completed (for example, there is no roof, no connection to communications, etc.), then on account 08 you need to reflect the costs of bringing the building to a condition suitable for use:
D 08 – K 10, 70, 69, 60…
Once the building is ready for use, include it in property, plant and equipment.
Rationale
How to formalize and reflect in accounting and taxation the receipt of fixed assets that require state registration
Accounting
If expenses associated with state registration of an object (state fees, costs for paperwork, etc.) are incurred after the initial cost of the asset is formed and it is included in fixed assets, then take them into account as part of other expenses:
Debit 91-2 Credit 68 subaccount “State duty” (60, 76...)
– state duty and other expenses associated with state registration of real estate, carried out after the object was accepted for accounting as an object of fixed assets, are taken into account.
After registering the ownership of real estate, transfer the fixed asset from the subaccount “Fixed assets, the ownership of which is not registered” to another subaccount (for example, “Real estate, the ownership of which is registered”):
Debit 01 subaccount “Real estate objects, the ownership of which is registered” Credit 01 subaccount “Fixed assets, the ownership of which is not registered”
– an object of fixed assets, the ownership of which is registered, is taken into account.
- From recommendation
Andrey Kizimov,- built independently or by contract.
- From recommendation
Andrey Kizimov, Deputy Director of the Department of Tax and Customs Tariff Policy of the Ministry of Finance of Russia
What property is classified as fixed assets?
Accounting
The main criterion for a property to belong to the category of fixed assets in accounting is its useful life. If this period exceeds 12 months, the property may be classified as fixed assets.
In addition to the period of inclusion of property in fixed assets, it also depends on the nature of its use. Fixed assets can be recognized as property that:
- intended for use in the production (managerial) activities of the organization or for rental;
- not intended for resale;
- capable of generating income in the future.
Such rules are established by paragraphs and PBU 6/01.
In particular, fixed assets may include:
- buildings, structures;
- working and power machines and equipment;
- measuring and control instruments and devices;
- Computer Engineering;
- vehicles;
- tools, production and household equipment and supplies;
- land;
- environmental management facilities;
- capital investments in land (costs for radical improvement of land) and in leased fixed assets.
Real estate means not only building structures, but also land plots, subsoil, and other objects closely related to the land. It is impossible to move them without damaging them. The article will discuss the tax and accounting of real estate, the peculiarities of registering transactions with them in the conditions of reorganization or liquidation of an enterprise, leasing, construction or reconstruction. In this article we will talk about accounting of real estate at cadastral value using the example of the simplified tax system tax regime.
Expenses for the purchase of real estate and acceptance for accounting under the simplified tax system
Real estate is classified as fixed assets (fixed assets) used to create goods and sell them. When the “simplified” tax is calculated, the cost of those fixed assets that are recognized as property subject to depreciation must be taken into account. Neither land nor other environmental management assets are depreciated. Therefore, the cost of the land plot cannot be taken into account when calculating the single tax.
Costs incurred when purchasing real estate from the state are taken into account as expenses for paying for the services of special organizations that prepare documents for their cadastral and technical registration. The initial cost of real estate under the simplified tax system includes:
- When purchasing – the supplier’s price plus the costs of bringing the object to condition.
- During construction - the amount paid to the contractor.
The remaining costs can be included in the expenses necessary to ensure normal activities. This occurs in the period in which the costs were incurred.
All expenses for the purchase of real estate are recognized only after the company confirms that the necessary documents have been submitted for registration. When there are no problems with determining the initial cost of the fixed assets and it has been formed, the object can be accepted for accounting. If the ownership right needs to be officially registered, then the acceptance of the OS for accounting is not affected by either the fact of submitting a package of documents or the registration process itself.
Basic wiring:
Video help “How to maintain fixed asset accounting using the simplified tax system”
This lesson explains how to keep accounting records of fixed assets, and in particular real estate, using the simplified tax system. The training is conducted by the teacher of the “Accounting and Tax Accounting for Dummies” website, chief accountant Gandeva N.V. To watch online, click on the video ⇓
Accounting for real estate reconstruction under the simplified tax system
Reconstruction of a property means improving its quality characteristics. The costs of its implementation under the simplified tax system are taken into account in expenses. They are recognized as such from the moment the facility is put into operation. Expenses are written off evenly until the end of the year, which marks the completion of reconstruction or repair of the property. Paid expenses are taken into account.
Example No. 1. The company, using a simplified approach (income minus expenses), reconstructed the workshop building and launched it in June. In total, the work cost 120 thousand rubles. The money was transferred to the account of the company that did the reconstruction.
Expenses will be taken into account at 40 thousand rubles. (120 thousand/3):
- the thirtieth of June;
- the thirtieth of September;
- thirty first December.
The costs of design documentation are also expenses that increase the cost of the operating system (initial). Read also the article: → “. They are displayed similarly to the example described above. Expenses are accounted for in the same manner when the company that began the reconstruction used the “income” object, and upon completion of the work switched to “income minus expenses.”
Initial cost of real estate for enterprises with OSNO
When an organization uses OSN, the cost of OS should include:
- The cost of a property built or purchased.
- Interest on a loan (loan) that is attracted to the acquisition of fixed assets and is recognized as an investment asset.
- Expenses to bring the property to a usable condition (repair work, reconstruction).
- Other costs that are directly related to the purchase (intermediary commissions, travel expenses).
For companies used by OSNO, there is no need to submit documents for state registration in order to begin calculating depreciation.
Features of real estate accounting
Real estate is a special commodity. This can be said because:
- Ownership and other real rights must be registered in a unified state register. Only then are they recognized as legal.
- When a company initially intends to sell a property, it is not accounted for as fixed assets. This applies to those enterprises that are engaged specifically in the purchase of real estate and its sale. Therefore, such objects for them are not OS, but goods (count 41).
- For tax purposes, it does not matter how exactly the property is recorded in accounting. It is always reflected as property subject to depreciation.
Real estate accounting for the seller
When selling or disposing of a property, its value must be written off from accounting. Revenue may be recognized if the following conditions are met:
- The company has the right to it. It is confirmed by specific agreements.
- The amount of revenue is designated and calculated.
- There is evidence that the entity will increase its economic benefits by carrying out the sale transaction.
- The ownership of the property was transferred to the buyer.
- The costs of the sales transaction are determined unambiguously.
Income and expenses from writing off fixed assets from accounting are credited to profit and loss as other income and expenses.
Example No. 2. Company A sold a building to company B for 2 million rubles. (VAT – RUB 305,084). The object was transferred on March 1, 2016. The right to property was registered on April 30. 2016 Initial cost of the structure - 4.5 million; depreciation amount - 3 million.
The selling company made accounting entries:
| date | Debit | Credit | Sum | Operations |
| 01.03.2016 | 02 | 01 | 3 000 000 | Write-off of depreciation accrued on the structure |
| 45 | 01 | 1 500 000 | Write-off of residual value | |
| 01.04.2016 | No entries available | |||
| 25.04.2016 | 62 | 91.1 | 2 000 000 | Sales revenue in the amount of other income |
| 91.2 | 68 | 305 084 | VAT charged | |
| 91.2 | 45 | 1 500 000 | Write-off of residual value | |
| 91.9 | 99 | 194 196 | Profit reflected | |
The tax documents of company A (seller) reflect (rub.):
- Sales income 1,694,916 (2,000,000 – 305,084)
- Expenses 1,500,000
- Profit from sales 194,916
Accounting when purchasing real estate. Depreciation calculation
For tax accounting, it is important to comply with the following requirements:
- The company prepared and submitted documents for state registration.
- The facility has already been put into operation.
Most often, the company that purchased the property uses the straight-line depreciation method (see →). The rate is determined based on the period of useful use. It is reduced by the number of years (months) of work at the previous enterprise.
The useful life of the OS is determined by one of the following methods:
- Taking into account the useful life of the total.
- Based on its remainder.
Important! When choosing the second option, you should have a document confirming the period of use of the OS by the previous owner. If this is not possible, then you need to go with the first option. The organization can set this period independently.
Example No. 3.(Following the data of example No. 2). The buyer records in his accounting:
| date | Debit | Credit | Sum | Operations |
| 01.03.2016 | 08 | 60 | 1 694 916 | The construction has arrived |
| 01 | 08 | 1 694 916 | The structure is accepted for accounting as fixed assets | |
| 25.04.2016 | 19 | 60 | 305 084 | VAT amount allocated |
| 68 | 19 | 305 084 | VAT is accepted for deduction |
Maintaining accounting records when transferring real estate for rent
Organizations in which income in the form of rent is recognized as income from ordinary activities keep records using the following entries:
| Debit | Credit | Operations |
| 01 (sub-account “Assets for rent”) | 01 | Leased fixed assets (analytical accounting) |
| 20 | 02 | Calculation of depreciation amount for leased objects |
| 20 | 69, 71, 76, 70 | Other expenses for leasing OS |
| 62 | 90.1 | Rental fee |
| 90.2 | 20 | Write-off of depreciation and other expenses |
| 90.3 | 68 | VAT reflection |
| 51 | 62 | Receipt of rent |
Documents confirming the operations of providing real estate for rent:
- Agreement.
- Certificates and calculations (accounting).
- Invoice.
- Bank statement.
Real estate accounting for the tenant
An enterprise that has received real estate for rent under an agreement uses off-balance sheet account 001 and the following entries:
| Debit | Credit | Operations |
| 001 | The rented operating systems have arrived. Valuation – according to the contract | |
| 20, 23, 26, 29, 25 | 76 | Rent arrears |
| 19 | 76 | VAT on rent |
| 76 | 51 | Rent transferred |
| 68 | 19 | To deduct VAT |
The reliability of the operations performed is confirmed by the primary documents described above.
Technical inventory of real estate objects
Real estate objects are individually defined things. They are subject to a single accounting and registration procedure - starting with cadastral registration and ending with the preparation of documents for ownership. Accounting involves assigning a specific number, called cadastral. It is unique and not repeated throughout the country over time.
This happens in the process of cadastral and technical accounting, in the manner prescribed by law. Inventory of real estate - capital construction projects, and cadastral registration of land are needed for the official registration of rights. This ensures the participation of resources in circulation.
The procedure for conducting them is regulated by regulations of the executive branch, but not by federal laws. Failure to assign a cadastral number to an OS object during technical registration cannot prevent its state registration.
Real estate accounting in SNT - features
SNTs are non-profit organizations, which means they must maintain full accounting records - from developing accounting policies to submitting reports to tax and statistical authorities. The statutory activities of SNT are not subject to taxes. Therefore, VAT on purchased fixed assets is included in their cost.
Real estate built on its own must be reflected in accounting at the amount of actual expenses.
For detailed accounting of land areas and other real estate received by SNT as a property share, you need to keep an appropriate book. It consists of three sections, taking into account:
- area of land plots;
- implicit OS;
- inventory data.
When SNT receives from local authorities, for example, a land ownership deed or a lease agreement, an entry must be made about this in the property accounting book.
Top 5 popular questions about real estate
Question No. 1. When is it necessary to register a real estate lease agreement?
State registration is mandatory if the lease agreement is concluded for a year or more.
Question No. 2. Is it possible to acquire the right to real estate in the absence of technical inventory?
This is possible when property is inherited in the order of succession or reorganization of enterprises.
Question No. 3. The property contains several non-residential premises in one building. Is it possible to issue one technical passport?
If the premises are collectively an isolated and single object, then it is possible to issue one common technical passport and other documentation (accounting and technical).
Question No. 4. Should unfinished construction projects be recorded in the state real estate cadastre?
Yes, because they are real estate objects.
Question No. 5. How long are documents from the state real estate cadastre retained?
They should last forever.
Real estate is the most valuable asset of an enterprise and, at the same time, the least liquid. Errors in their accounting significantly distort the financial statements of companies and deceive investors and users. Therefore, the accounting records of each property must be correct.
Legal aspects
In accordance with paragraph 1, paragraph 1, article 130 of the Civil Code of the Russian Federation (hereinafter referred to as the Civil Code of the Russian Federation), real estate is objects firmly connected to the land. It is impossible to move such objects without causing them disproportionate damage. This category of property includes land plots and subsoil plots, forests and perennial plantings, buildings and structures, non-residential and residential premises, unfinished construction projects, etc.
For example, a hangar belongs to real estate if it is a permanent structure or part of it (non-permanent buildings, such as panel houses, prefabricated frame structures, do not meet the criteria of real estate). But household premises on wheels or railway cars have no connection with the ground and can be easily moved without compromising their purpose.
There are exceptions to this rule. The Civil Code classifies the following as real estate:
Aircraft and ships;
- inland navigation vessels;
- space objects;
- enterprises, as property complexes in general.
When accounting for real estate, it is worth remembering that the rights to these objects and transactions with them are subject to mandatory state registration. What is the difference between the concepts of registration of rights and registration of transactions?
Registration of rights and transactions
Real estate often becomes the object of a wide variety of actions carried out by citizens and legal entities in order to establish, change or terminate civil rights and obligations. Such actions are called transactions. Transactions, in particular, include all civil contracts: purchase and sale, lease, rent, barter, donation, etc.
Rights arising on the basis of a real estate transaction are subject to state registration in cases and in the manner provided for by the legislation of the Russian Federation. According to clause 1 of Article 131 of the Civil Code of the Russian Federation, the following real rights (including their limitation, transfer and termination) are subject to registration in the Unified State Register of Rights to Real Estate (USRE):
Ownership;
- right of economic management;
- right of operational management;
- right of lifelong inheritable ownership;
- right of permanent use;
- mortgage;
- easements, etc.
Legislation may require registration of the transaction itself. Currently, this requirement remains in relation to contracts:
- rental of real estate - clause 2 of Article 609 of the Civil Code of the Russian Federation;
- rental of a building, structure (for a period of at least 1 year) - clause 2 of Article 651 of the Civil Code of the Russian Federation;
- lease of an enterprise - clause 3 of article 658 of the Civil Code of the Russian Federation;
- lease of a land plot (for a period of at least 1 year) - clause 2 of Article 26 of the Land Code of the Russian Federation;
- on mortgage - paragraph 1, clause 1, article 10 of the Federal Law of July 16, 1998 No. 102-FZ “On mortgage (real estate pledge)”;
- participation in shared construction - clause 3 of Article 4 of the Federal Law of December 30, 2004 No. 214-FZ “On participation in shared construction of apartment buildings and other real estate and on amendments to certain legislative acts of the Russian Federation.”
Based on the Federal Law of December 30, 2012 No. 302-FZ “On Amendments to Chapters 1, 2, 3 and 4 of Part One of the Civil Code of the Russian Federation,” from March 1, 2013, the rule on registration of real estate transactions does not apply to contracts:
- purchase and sale of a residential building, apartment (parts of a residential building, apartment) - clause 2 of Article 558 of the Civil Code of the Russian Federation;
- purchase and sale of an enterprise - clause 3 of Article 560 of the Civil Code of the Russian Federation;
- donation of real estate - clause 3 of article 574 of the Civil Code of the Russian Federation;
- alienation of real estate for payment of rent - Article 584 of the Civil Code of the Russian Federation;
The procedure for state registration is established by Federal Law No. 122-FZ of July 21, 1997 “On state registration of rights to real estate and transactions with it” (hereinafter referred to as Law No. 122-FZ). For registration actions, a state fee is charged, the amount of which is determined in accordance with clause 1 of Article 333.33 of the Tax Code of the Russian Federation. For example, the fee for registering rights to real estate for legal entities in 2015 is 22,000 rubles. (Clause 22, Clause 1, Article 333.33 of the Tax Code of the Russian Federation). Moreover, payment is made by the organization - the buyer, unless otherwise provided by the contract. According to clause 1 of Article 14 of Law No. 122-FZ, the state registration of rights is documented at the choice of the copyright holder:
Certificate of state registration of rights;
- an extract from the Unified State Register of Rights.
A registered transaction (agreement) is certified by a special registration inscription on the document, which expresses the content of the transaction.
Cadastral registration
Real estate is also subject to cadastral registration on the basis of Federal Law No. 221-FZ of July 24, 2007 “On the State Real Estate Cadastre” (hereinafter referred to as Law No. 221-FZ). Its list includes:
- land;
- building;
- structures;
- premises;
- objects of unfinished construction.
The provisions of Law No. 221-FZ do not apply to the following objects:
- subsoil areas;
- aircraft;
- sea vessels;
- inland navigation vessels;
- space objects;
- enterprises as property complexes.
Russian legislation does not establish a direct obligation to register real estate in the cadastral register. However, in order to make any transaction (purchase, sale, lease) with real estate, you need to have ownership of the object, which must be officially registered. In turn, in order to obtain a certificate of state registration of ownership of real estate, you must first register the object in the state real estate cadastre (GNK). Thus, cadastral registration is a prerequisite for the participation of real estate in civil circulation. Cadastral registration rules apply to:
- land plots - from 01/01/2008;
- buildings, structures, premises, unfinished construction projects - from 01/01/2013
What is cadastral registration? This is a procedure for entering information about real estate into the state real estate cadastre (GKN) - a register of information about registered real estate on the territory of the Russian Federation. Cadastral registration has a number of main goals:
- confirmation of the existence of an object;
- confirmation of the termination of the existence of an object or information about it;
- individualization of an object among other similar objects;
- determination of the cadastral value of the object.
In accordance with Government Decree No. 457 of June 1, 2009, the Federal Service for State Registration, Cadastre and Cartography (Rosreestr) is responsible for registering real estate and maintaining the state real estate cadastre (GKN). In the constituent entities of the Russian Federation, these functions are performed by the authorized body of Rosreestr - the cadastral chamber. You can also contact the multifunctional center (MFC) operating in the region.
Each property is assigned a state registration number (or cadastral number). It is unique and permanent.
There is no state fee for registering real estate in the cadastral register.
Contract of sale
The acquisition of real estate is carried out under a purchase and sale agreement. Relations between the parties arising on the basis of this agreement are regulated by the general provisions of paragraph 1 of Chapter 30 of the Civil Code of the Russian Federation, as well as by the special rules of paragraph 7 “Sale of real estate” (Articles 549 - 558) and paragraph 8 “Sale of an enterprise” (Articles 559 - 566 ) Chapter 30 of the Civil Code of the Russian Federation.
According to Article 549 of the Civil Code of the Russian Federation, under a real estate purchase and sale agreement, the seller must transfer ownership of real estate to the buyer: land, building, structure, etc. The buyer, in turn, must accept this real estate, paying a certain amount of money (Article 454 Civil Code of the Russian Federation).
A contract for the purchase and sale of real estate is not subject to state registration and is considered concluded from the moment it is signed by both parties (clause 1 of Article 433 of the Civil Code of the Russian Federation).
The immovable property is transferred by the seller and accepted by the buyer under a signed transfer deed or other transfer document (Article 556 of the Civil Code of the Russian Federation). After this, the contract is considered fulfilled. However, the buyer will be able to dispose of the property received into possession only when he becomes its full owner, i.e. after state registration of the transfer of ownership in the Unified State Register. The seller also does not have the right to dispose of the real estate after its transfer and until the state registration of the transfer of ownership, since he is no longer its legal owner, and therefore does not have the opportunity to exercise his rights as the owner in relation to this property.
Big deal
Another important point that you need to know and remember when buying expensive real estate. If the value of the acquired property is:
- for an LLC - 25% or more of the value of the company’s property, unless the charter of the LLC establishes a higher percentage threshold for a major transaction (Clause 1, Article 46 of the Federal Law of 02/08/1998 No. 14-FZ “On Limited Liability Companies” );
- for JSC - 25% or more of the book value of the company’s assets (paragraph 1, clause 1, article 78 of the Federal Law of December 26, 1995 No. 208-FZ “On Joint-Stock Companies”);
then the transaction is considered major. Under these circumstances, the decision to enter into a major transaction must be made:
in LLC:
- general meeting of participants;
- board of directors - supervisory board, when the value of real estate is in the range from 25% to 50% of the value of the LLC’s property (if decision-making is within the competence of the board of directors);
in JSC:
- by the general meeting of shareholders, when the value of real estate is higher than 50% of the book value of the assets of the joint-stock company (the decision is made by ¾ votes);
- by the board of directors - by the supervisory board unanimously, when the value of real estate is from 25% to 50% of the book value of the assets of the joint-stock company.
Violations of legal requirements in relation to a major transaction may result in its invalidity.
Accounting
Actual costs for the acquisition of real estate subject to state registration are accumulated in “Investments in non-current assets”:
- subaccount 08-1 “Purchase of land”;
- subaccount 08-2 “Purchase of environmental management facilities.”
- subaccount 08-4 “Purchase of fixed assets”.
Debit 08-4 (08-1, 08-2) - Credit 60
- reflects the costs of purchasing real estate subject to state registration.
Debit 08-4 (08-1, 08-2) - Credit 60, 70, 69, 71, 76, …
- additional costs associated with the acquisition of real estate subject to state registration (information and consulting services, intermediary services, etc.) are reflected.
In order to register an object on, you do not need to wait for the submission of documents for state registration of ownership of this property. An organization has the right to transfer an asset to fixed assets if its initial cost has been formed (taking into account the conditions of clause 4 of PBU 6/01). This is indicated by paragraph 52 of the Guidelines for accounting of fixed assets, approved by Order of the Ministry of Finance of the Russian Federation dated October 13, 2003 No. 91n (hereinafter referred to as Guidelines for accounting of fixed assets No. 91n) as amended by Order of the Ministry of Finance dated December 24, 2010 No. 186n ( effective from January 1, 2011).
Reference. According to the previous edition of clause 52 of the Methodological Guidelines for Accounting for Fixed Assets No. 91n, a real estate object was accounted for as a fixed asset if (1) its initial cost was formed; (2) the primary documents for acceptance and delivery have been completed; (3) the facility was actually in operation; (4) documents were submitted for state registration.
Norm clause 52 of the Methodological Guidelines for Accounting for Fixed Assets No. 91n also clarifies that real estate objects that are not registered in the generally established manner are accounted for in a separate subaccount of account 01 (03). At the same time, entries are made in accounting.
Debit 01 (03), subaccount “Immovable objects that have not passed state registration” - Credit 08-4 (08-1, 08-2)
- real estate that has not passed state registration is taken into account in a separate subaccount of the fixed assets accounting account.
After registration of ownership rights, the immovable object is transferred to fixed assets, the rights to which are registered:
Debit 01 (03), subaccount “Immovable objects that have passed state registration” - Credit 01 (03), subaccount “Immovable objects that have not passed state registration”
- real estate has been transferred to the composition of fixed assets (income investments in material assets) that have passed state registration.
Accounting for state duties
How?
In accounting, the costs of state registration of the transfer of ownership of a real estate property must be included in its initial cost. The basis for this is clause 8 of PBU 6/01. Typically, problems with taking into account the cost of paying state duties and other expenses do not arise when they are incurred in the process of forming the initial cost of the asset. In this case, the organization will reflect them in accounting as follows.
Debit 68 - Credit 51
Debit 08-4 (08-1, 08-2) - Credit 68
- the state fee for registering rights to real estate is taken into account in the initial cost of the fixed asset.
Debit 08-4 (08-1, 08-2) - Credit 60.76
- other costs associated with registering rights to real estate are taken into account in the initial cost of the fixed asset (paperwork, notary services, etc.).
However, the state duty is taken into account differently in a situation where the object is already included in fixed assets. The fact is that clause 14 of PBU 6/01 contains a closed list of grounds for changing the initial cost of a fixed asset:
Completion;
- retrofitting;
- reconstruction;
- modernization;
- partial liquidation;
- revaluation.
Therefore, state registration costs incurred after an independent inventory item has been formed cannot increase its cost. Such expenses must be taken into account as other expenses on account 91 “Other income and expenses”, subaccount 2 “Other expenses”.
Debit 68 - Credit 51
- funds were transferred from the current account to pay the state fee for registering rights to real estate.
Debit 91-2 - Credit 68
- the costs of paying the state fee for registering rights to real estate, incurred after the object was accepted for accounting as a fixed asset, are taken into account.
Debit 91-2 - Credit 60.76
- other expenses for state registration of rights to real estate incurred after the object was accepted for accounting as a fixed asset (paperwork, notary services, etc.) are taken into account.
When?
Expenses for state registration of rights to real estate are recognized in accounting when three conditions of clause 16 of PBU 10/99 are met:
- the expense is carried out in accordance with the terms of the contract (legal requirements, business custom);
- the amount of expenditure can be determined;
- there is confidence that when performing a specific transaction there will be a decrease in the economic benefits of the organization.
Moreover, each fact of economic life must be documented in a primary document (Part 1, Article 9 of Federal Law No. 402-FZ dated December 6, 2011 “On Accounting” (hereinafter referred to as Law No. 402-FZ)).
For example, state duty:
- charged as required by law;
- its size is determined by the norms of the Tax Code;
- As a result of paying a fee, the economic benefits of the organization are reduced (?).
Particular attention should be paid to this last condition. Is the moment of payment the date when the expense should be accrued?
Based on clause 5.2, clause 1, Article 333.18 of the Tax Code of the Russian Federation, the state fee for registering rights to real estate is transferred to the Federal budget:
- before submitting an application for registration;
- after submitting an application for registration, but before its consideration, if the application is submitted electronically.
By paying the state fee, the organization can refuse to perform legally significant actions. Then, according to paragraph 4, paragraph 1, Article 333.40 of the Tax Code of the Russian Federation, funds must be returned. Consequently, the transfer of duties to the budget is not a sufficient basis for recognizing an expense in accounting. The date for accrual should be considered the day of submission of documents for registration. It is then that the third necessary condition is met: a decrease in economic benefits. Once registration actions have begun, the organization can no longer refuse to complete them and demand a refund of the paid fee. The fact of receipt of documents for state registration is confirmed by a receipt that the registration authority issues to the applicant (Clause 6, Article 16 of Law No. 122-FZ).
VAT accounting procedure
The amount of “input” VAT presented by the seller to the buyer of real estate is accepted for deduction after the fixed asset is accepted for registration, subject to tax legislation (Article 171, Article 172).
According to paragraph 17, paragraph 2, Article 149 of the Tax Code of the Russian Federation, state duty and other types of duties and fees are not subject to VAT.
Tables 1 - Accounting entries for accounting for the acquisition of fixed assets subject to state registration
| No. | Contents of operation | Debit | Credit |
| 1 | The purchase price of the real estate property is reflected (excluding VAT) | 08-4 | 60 |
| 2 | Simultaneously with wiring step 1: VAT on the purchased item was taken into account based on the supplier’s invoice |
19 | 60 |
| 3 | Additional costs associated with the purchase of fixed assets are reflected: delivery, information and consulting services, loading and unloading operations, etc. (excluding VAT) | 08-4 | 60, 70, 69, 71, 76, … |
| 4 | Simultaneously with wiring step 3: VAT on additional expenses included |
19 | 60,71, 76, … |
| Situation 1: State duty expenses were incurred before the object was reflected on account 01 |
|||
| 5 | 68 | 51 | |
| 6 | The cost of state duty for registering rights to real estate is included in the initial cost of the fixed asset | 08-4 | 68 |
| 7 | 01 | 08-4 | |
| 8 | 68 | 19 | |
| 9 | 68 | 19 | |
| Situation 2: State duty expenses were incurred after the object was reflected in account 01 |
|||
| 5 | The real estate object is accepted for accounting as a fixed asset at its original cost | 01 | 08-4 |
| 6 | Submitted for VAT deduction on purchased fixed assets | 68 | 19 |
| 7 | Claimed for deduction of VAT on additional expenses associated with the purchase of fixed assets | 68 | 19 |
| 8 | Funds were transferred from the current account to pay the state duty for registering rights to real estate. | 68 | 51 |
| 9 | The costs of the state duty for registering rights to real estate are reflected as part of other expenses | 91-2 | 68 |
Example 1.
In mid-May, My Food LLC acquired premises for a food warehouse under a purchase and sale agreement for RUB 4,720,000, including VAT (18%) - RUB 720,000. Since the object is fully suitable for its intended use, the organization transferred it to fixed assets and put it into operation.
Documents for registration of rights to real estate were submitted to the registration authority in early June. The state duty for a legal entity was 22,000 rubles. In July, ownership of the premises was registered.
Reference data:
- The company applies the general taxation system (OSNO).
- in accordance with the working chart of accounts approved in the accounting policy of My Food LLC for accounting purposes, immovable fixed assets are accounted for in the following subaccounts.
Working chart of accounts of My Food LLC
| Code | Name |
| 01 | Fixed assets |
| 01-1 | |
| 01-2 | |
| ....... | ....... |
Solution.
The following entries will be made in accounting.
| No. | Contents of operation | Debit | Credit | Amount, rub. |
| May | ||||
| 1 | The cost of the purchased premises is reflected (excluding VAT) | 08-4 | 60 | 4 000 000 |
| 2 | The amount of “input” VAT on the real estate object is taken into account | 19 | 60 | 720 000 |
| 3 | The object was accepted for accounting as a fixed asset at its original cost and put into operation: the premises are reflected in the composition of immovable objects, the rights to which are not registered | 01-1 | 08-4 | 4 000 000 |
| 4 | The amount of “input” VAT on the purchased premises has been submitted for deduction | 68 | 19 | 720 000 |
| June | ||||
| 5 | Funds were transferred from the current account to pay the state fee for registering ownership of a real estate property | 68 | 51 | 22 000 |
| 6 | The state duty for registering ownership of real estate is taken into account in other expenses of the organization | 91-2 | 68 | 22 000 |
| July | ||||
| 7 | The premises are included in the composition of immovable objects that have passed state registration | 01-2 | 01-1 | 4 000 000 |
In accordance with clause 21 of PBU 6/01, the organization will begin to depreciate the warehouse space in July.
End of example
Income tax
For profit tax purposes, real estate acquired by an organization to conduct business activities are taken into account as part of depreciable property, provided that they meet the criteria paragraph 1, clause 1, article 256 of the Tax Code of the Russian Federation .
Fixed assets are accepted for tax accounting at their original cost, which is determined in the manner established by clause 1 of Article 257 of the Tax Code of the Russian Federation. This cost is subsequently expensed through depreciation. According to clause 4 of Article 259 of the Tax Code of the Russian Federation for objects of depreciable property, the rights to which are subject to state registration, depreciation is accrued in the generally established manner, as for any other fixed assets: from the 1st day of the month following the month the object was put into operation. In this case, the organization does not need to wait for the date of state registration of ownership of real estate or document the fact of submitting documents to the registration authority.
Reference. The rules of paragraph 4 of Article 259 do not apply to fixed assets that the organization began using before 2013. The previously valid norm of paragraph 11 of Art. 258 of the Tax Code of the Russian Federation did not give organizations the opportunity to depreciate objects subject to state registration before the deadline for documented submission of documents for registration of property rights. From January 1, 2013, this norm ceased to apply due to the entry into force of Federal Law No. 206-FZ of November 29, 2012.
But not all real estate is subject to depreciation. According to clause 2 of Article 256 of the Tax Code of the Russian Federation, the exception is land plots and other natural resources (subsoil, water, etc.), unfinished capital construction projects, etc. Some fixed assets are completely excluded from depreciable property (clause 3 of Art. .256 Tax Code of the Russian Federation).
Depreciation bonus
Based on clause 9 of Article 258 of the Tax Code of the Russian Federation, an organization has the right to reduce the initial cost of a fixed asset by a depreciation bonus, the amount of which may be:
- no more than 10% of the original cost of an object belonging to depreciation groups 1, 2, 8-10;
- no more than 30% of the original cost of an object belonging to 3-7 depreciation groups.
The decision to use bonus depreciation and its amount must be fixed in the accounting policy for tax purposes.
The depreciation bonus is taken into account as part of the indirect expenses of the reporting (tax) period in which the fixed asset begins to depreciate (paragraph 2, paragraph 3, article 272 of the Tax Code of the Russian Federation). Taking into account the provisions of clause 4 of Article 259 of the Tax Code of the Russian Federation, write-off occurs in the month following the month the real estate was put into operation. In this case, the object itself, after commissioning, is accepted into the depreciation group at its original cost minus the premium amount.
If the fixed asset in respect of which the depreciation bonus was applied was sold within 5 years from the date of its commissioning to a related party, then the bonus is subject to restoration in the reporting (tax) period of the sale transaction (paragraph 3 p. 9, Article 258 of the Tax Code of the Russian Federation).
Reference. Until January 1, 2013, the norm of paragraph 3, clause 9, article 258 of the Tax Code of the Russian Federation did not contain an indication of the specific category of persons to whom the property was sold.
Another important point. The depreciation bonus applies only to depreciable fixed assets, i.e., to those objects that are subject to depreciation in tax accounting. Thus, part of the cost of a land plot cannot be written off as expenses in the form of a depreciation bonus, since in accordance with clause 2 of Article 256 of the Tax Code of the Russian Federation, land is not depreciated.
Accounting legislation does not provide for bonus depreciation. Therefore, its use for tax purposes will necessarily lead to differences between the amounts of depreciation accrued in accounting and tax accounting.
Purchase of a building and land plot underneath it
When purchasing real estate, an organization may encounter some difficulties in determining its initial cost. For example, in practice, a situation may arise when the contract for the purchase of a building (structure, structure, etc.) and the land plot under it indicates a single price. The norm of clause 2 of Article 555 of the Civil Code of the Russian Federation specifies that in such cases the established price of a building or other real estate includes the price of the land plot on which the object is located (unless otherwise provided by law or contract). In addition, the law does not oblige the parties to a transaction when buying and selling several real estate properties to indicate the price separately for each of them.
However, it will not be possible to accept the building and the land plot for registration as a single one. This conclusion follows from paragraph 2 of clause 6 of PBU 6/01, its legitimacy is confirmed by the Ministry of Finance of Russia in letter dated May 19, 2003 No. 04-02-05/3/50. The fact is that a building has a limited useful life, and for land it is not established at all. (In addition, in accordance with paragraph 1 of paragraph 4 of Article 374 of the Tax Code of the Russian Federation, a land plot is not subject to property tax. If the value of the land is not identified, then the inspectors will most likely require that the contract amount be taken into account in full when calculating the tax base. ) This means that these immovable objects need to be taken into account separately. This raises the question, what part of the cost should be attributed to the building, and what part to the land plot?
The current legislation does not give a clear answer to the question posed, there are practically no official explanations from officials, and judicial practice has not yet developed. There are several ways to solve the problem:
- conclude an additional agreement to the purchase and sale agreement, which indicates the cost of each real estate item. Although this solution is the most acceptable, it is not always possible;
- expertly: using independent assessment data, proportionally divide the total cost between real estate objects. But it is worth noting that the use of this method does not exclude the possibility of disputes with tax authorities;
- distribute the costs of acquiring several real estate properties on the basis of a base chosen and justified by the organization (for example, in proportion to the cadastral value of the building and land plot). This opinion was expressed by representatives of the Russian Ministry of Finance in a letter dated June 28, 2013 No. 03-05-05-01/24812. Moreover, the option of calculating the cost of the building by subtracting the estimated value of the land from the total amount, proposed by the author of the letter, did not find support from the financial department.
An organization must remember that when choosing one or another procedure for dividing the total cost between several real estate objects, it takes a certain risk. What is it connected with? The norm of clause 7 of PBU 1/2008 allows you to develop accounting methods if they are not established by law. But the Tax Code does not provide such an opportunity, since tax rules must be the same and understandable for all taxpayers. Therefore, any developed method of tax accounting that is not enshrined in law may cause claims from inspectors.
Additional costs incurred when purchasing fixed assets that require registration of rights are distributed among the objects in the appropriate proportion.
Tax accounting of state duty
How?
Also, as in accounting, the procedure for tax accounting of expenses associated with state registration of rights to real estate depends on the moment of their commission:
- before putting the facility into operation;
- after the facility is put into operation.
In the first case, expenses must be taken into account when determining the initial cost of a fixed asset. This point of view is shared by the Ministry of Finance of Russia (letters: dated 03/04/2010 No. 03-03-06/1/113, dated 05/19/2009 No. 03-05-05-01/26, dated 05/18/2009 No. 03-05-05-01/26, dated 03/27/2009 No. 03-03-06/1/195, etc.). He substantiates his position by the norm of clause 1 of Article 257 of the Tax Code of the Russian Federation. According to this rule, when purchasing a real estate property, its initial cost consists of the costs of acquisition, delivery and bringing it to a usable condition. At the same time, only VAT and excise taxes are not included in the amount, and state duty is not included in this list.
In the second case, expenses are written off at a time as other expenses associated with production and sales (clause 40, clause 1, article 264 of the Tax Code of the Russian Federation). The argument in favor of this accounting procedure is that when a fixed asset object is put into operation, its initial value has already been formed and is not subject to change, with the exception of the grounds listed in paragraph 1 of paragraph 2 of Article 257 of the Tax Code of the Russian Federation, namely:
- completions;
- retrofitting;
- reconstruction;
- modernization;
- technical re-equipment;
- partial liquidation;
- other similar grounds.
Registration of rights to real estate is not one of these grounds. Consequently, in the situation under consideration, state duty costs cannot increase the initial cost of the fixed asset. The validity of these conclusions is confirmed by the Ministry of Finance of Russia in its letter dated 02/11/2011 No. 03-03-06/1/89.
In addition to the above-described procedure for accounting for the costs of state registration of rights to real estate, there is an alternative approach. According to it, the state duty should be included in other expenses, regardless of when it was accrued: before or after the commissioning of the fixed asset. The arguments given here are as follows:
The state fee is charged for registering the transfer of ownership of an already acquired object;
- the fact of payment of the state duty does not affect the suitability of the object for use.
This means that the state duty is an independent type of expense that is not associated with the acquisition, delivery and bringing of the fixed asset to a suitable operational condition.
In addition, in accordance with Article 13 of the Tax Code of the Russian Federation, state duty refers to federal fees. Therefore, on the basis of paragraph 1 of paragraph 1 of Article 264 of the Tax Code of the Russian Federation, the organization has the right to take such costs into account as part of other expenses.
Previously, this position was supported by the Ministry of Finance of Russia (letters: dated October 19, 2007, No. 03-03-06/1/725, dated February 16, 2006, No. 03-03-04/1/116, dated March 2, 2006. No. 03-03-04/1/165, dated March 30, 2005 No. 03-03-01-04/1/137). However, later explanations from financiers on the issue of accounting for state duties before the object is put into operation contain conclusions that such expenses participate in the formation of the initial cost of the fixed asset.
Due to the ambiguity of existing opinions, an organization, guided by the norm of paragraph 4 of Article 252 of the Tax Code of the Russian Federation, can independently determine the group of expenses to which the costs of state registration of ownership of real estate will be attributed. The chosen accounting option must be fixed in the accounting policy for tax purposes (paragraph 5 of Article 313 of the Tax Code of the Russian Federation).
When?
In order to take into account the state fee for registering rights to real estate for profit tax purposes, 3 main principles for recognizing expenses, which are formulated in paragraph 1 of Article 252 of the Tax Code of the Russian Federation, must be observed:
- the expense must be justified;
- the expense must be documented;
- the expense must be related to an activity that is aimed at generating income.
If all of the above conditions are met, then an expense is accrued in tax accounting. But when exactly does this need to be done: when paying a state fee or submitting documents for registration?
From clause 5.2, clause 1, Article 333.18 of the Tax Code of the Russian Federation, it is known that settlements with the budget for carrying out legally significant actions are made:
- before submitting an application for registration;
- after submitting an application for registration, but before its consideration (when the application is submitted electronically).
If we calculate the expense on the day of payment, it turns out that we are ahead of the event with which the transfer of state duty is associated. Registration actions have not yet begun and may not even take place (at the initiative of the applicant). In the latter case, the organization has the right to return the transferred funds (clause 4, clause 1, Article 333.40 of the Tax Code of the Russian Federation), and then the recorded expense will be unfounded. Therefore, it is methodologically correct to recognize expenses on the date of submission of documents to the registration authority. Once the documents are accepted, the organization can no longer refuse to perform legally significant actions for which the state fee was paid.
Example 2.
At the beginning of August, Metal Rolling Plant JSC acquired an industrial building under a purchase and sale agreement for RUB 35,400,000, including VAT (18%) - RUB 5,400,000. and the land plot under it for 20,000,000 rubles, excluding VAT (according to paragraph 6, paragraph 2, article 146 of the Tax Code of the Russian Federation).
The real estate company "Partner" provided a service for the acquisition of real estate worth 354,000 rubles, including VAT (18%) - 54,000 rubles.
At the end of the same month, the organization accepted assets fully prepared for use into fixed assets and put them into operation. In accordance with the order of the manager, the useful life of the industrial building was 30 years and 6 months or 366 months (10 depreciation group). Since land is not subject to depreciation (paragraph 5, paragraph 17 of PBU 6/01, paragraph 2 of Article 256 of the Tax Code of the Russian Federation), its useful life is not established.
At the beginning of September, documents were submitted for state registration of ownership rights to real estate. Previously, the organization transferred the state fee for registration actions to the budget in the amount of 22,000 rubles. for each object.
In early October, ownership of the building and land was registered.
Reference data:
1) the company is on the general taxation system (OSNO);
2) in accordance with the accounting policy of Metal Rolling Plant JSC for accounting and tax accounting purposes:
- depreciation for all fixed assets is calculated using the straight-line method;
- useful life is determined according to the Classification of fixed assets included in depreciation groups (approved by Decree of the Government of the Russian Federation dated January 1, 2002 No. 1);
- additional costs associated with the receipt of several real estate objects are distributed in proportion to the purchase price of these objects according to the contract (excluding VAT);
3) in accordance with the accounting policy of Metal Rolling Plant JSC for tax accounting purposes
- a depreciation bonus is applied to depreciable fixed assets. (For objects of depreciation group 10, the premium is 10% of the original cost);
- expenses for real estate services are included in the initial cost of the fixed asset;
4) in accordance with the working chart of accounts approved in the accounting policy of Metal Rolling Plant JSC for accounting purposes, immovable fixed assets are accounted for in the following subaccounts.
Working chart of accounts of Metal Rolling Plant JSC
| Code | Name |
| 01 | Fixed assets |
| 01-1 | Real estate that has not passed state registration |
| 01-2 | Real estate that has passed state registration |
| ....... | ....... |
Solution.
In accounting, the organization must create 2 independent inventory objects: an industrial building and a land plot. Moreover, the costs of real estate services that are associated with the acquisition of these real estate assets must be distributed.
1. The cost of services that will be included in the initial cost of the industrial building.
. Calculation: Cost of realtor services x Price of the building excluding VAT / (Price of the building excluding VAT + Price of the land plot) = 300,000 rubles. x 30,000,000 rub. / (30,000,000 rub. + 20,000,000 rub.) = 180,000 rub.;
2. The cost of services, which will be included in the initial cost of the land plot.
. Calculation: Cost of realtor services x Price of the land plot / (Price of the building excluding VAT + Price of the land plot) = 300,000 rubles. x 20,000,000 rub. / (30,000,000 rub. + 20,000,000 rub.) = 120,000 rub.
The organization will reflect the acquisition of real estate in its accounting records using the following entries.
| No. | Contents of operation | Debit | Credit | Amount, rub. |
| August | ||||
| 1 | The cost of the acquired industrial building is reflected (excluding VAT) | 08-4 | 60 | 30 000 000 |
| 2 | The amount of “input” VAT on the production building is taken into account | 19 | 60 | 5 400 000 |
| 3 | The cost of the acquired land plot is reflected (excluding VAT) | 08-1 | 60 | 20 000 000 |
| 4 | 08-4 | 60 | 180 000 | |
| 5 | The cost of real estate services included in the initial cost of the building is reflected (excluding VAT) | 08-1 | 60 | 120 000 |
| 6 | The amount of “input” VAT on real estate services is taken into account | 19 | 68 | 54 000 |
| 7 | The industrial building was accepted for accounting as a fixed asset at its original cost and put into operation (recorded as part of real estate, the rights to which are not registered) | 01-1 | 08-4 | 30 180 000 |
| 8 | The land plot was accepted for accounting as a fixed asset at its original cost and put into operation (reflected as part of real estate, the rights to which are not registered) | 01-1 | 08-1 | 20 120 000 |
| 9 | The amount of “input” VAT on the purchased industrial building has been submitted for deduction | 68 | 19 | 5 400 000 |
| 10 | The amount of “input” VAT on real estate services has been submitted for deduction | 68 | 19 | 120 000 |
From the 1st day of the next month (September), the JSC accountant will begin to calculate depreciation on the production building in accounting and tax accounting. (A land plot is not recognized as a depreciable object.) However, when calculating depreciation charges for profit tax purposes, you need to take into account the depreciation bonus (10%).
Calculation of depreciation (A) using the linear method:
- In accounting:
1. Agod = Initial cost x Depreciation rate (year) = RUB 30,180,000. x 100% / 30.5 g = 989,508.20 rub.
2. Ames = Agod / 12 months. = 983,606.56 rub. / 12 months = 82,459.02 rub.
- In tax accounting:
1. Ames = (Initial cost - Depreciation premium) / Useful life (months) = (RUB 30,180,000 - RUB 30,000,000 x 10%) / 366 months. = 74,262.29 rub.
The calculation shows that the amounts of depreciation deductions that are written off in accounting and tax accounting are not the same. This is due to the fact that for profit tax purposes, an organization can include 3,000,000 rubles in expenses. from the initial cost of the object in the form of a premium already in the 1st month of depreciation, while this cannot be done in accounting. Thus, the total amount of expenses that the organization will be able to take into account in September will be:
- in accounting - 82,459.02 rubles;
- in tax accounting - RUB 3,074,262.29. (= 3,000,000 rub. + 74,262.29 rub.), which is 2,991,803.27 rub. (=3,074,262.29 rubles - 82,459.02 rubles) more than in accounting.
The resulting taxable temporary difference in the amount of RUB 2,991,803.27. forms a deferred tax liability (DTL):
- IT = Taxable temporary difference x 20% (income tax rate) = RUB 2,991,803.27. x 18% = RUB 598,360.65
In September (the month of the start of depreciation on fixed assets), the organization will accrue IT in accounting. The accounting entries will be as follows.
| No. | Contents of operation | Debit | Credit | Amount, rub. |
| September | ||||
| 1 | Funds were transferred from the current account to pay the state fee for registering ownership of a real estate property - an industrial building | 68 | 51 | 22 000 |
| 2 | The state duty for registration of ownership of a real estate object - an industrial building - has been taken into account | 91-2 | 68 | 22 000 |
| 3 | Funds were transferred from the current account to pay the state fee for registering ownership of a real estate property - a land plot | 68 | 51 | 22 000 |
| 4 | The state duty for registration of ownership of a real estate object - land plot has been taken into account | 91-2 | 68 | 22 000 |
| 5 | The depreciation charge for the production premises for September is reflected | 20 | 02 | 82 459,02 |
| 6 | Reflected accrual of IT | 68 | 77 | 598 360,65 |
Next month (October) depreciation in accounting will be charged at 8,196.73 rubles. (= RUB 82,459.02 - RUB 74,262.29) more than for tax purposes. This amount will partially reduce the taxable temporary difference that arose in September and, as a result, will pay off the accrued IT in the corresponding amount: RUB 8,196.73. x 20% = 1,639.35 rub.
| No. | Contents of operation | Debit | Credit | Amount, rub. |
| October | ||||
| 1 | The industrial building is included in the composition of real estate objects that have passed state registration | 01-2 | 01-1 | 30 180 000 |
| 2 | The land plot is included in the composition of immovable objects that have passed state registration | 01-2 | 01-1 | 20 120 000 |
| 3 | The depreciation charge for the industrial building for October is reflected | 20 | 02 | 82 459,02 |
| 4 | Partial write-off of IT reflected | 77 | 68 | 1 639,35 |
Accounting entries for the calculation of depreciation on the industrial building and the repayment of it, similar to entries No. 3 and No. 4 of the month of October, must be made in accounting monthly for the remaining useful life until the cost of the fixed asset is completely written off or removed from the register.
| Month | Accounting | Tax accounting | ||||
| depreciation charge | accrual of IT | decommissioning of IT | the remainder of IT | depreciation charge | depreciation bonus | |
| September | 82 459,02 | 598 360,65 | - | - | 74 262,29 | 3 000 000 |
| October | 82 459,02 | - | 1 639,35 | 596 721,30 | 74 262,29 | - |
| november | 82 459,02 | - | 1 639,35 | 595 081,95 | 74 262,29 | - |
| December | 82 459,02 | - | 1 639,35 | 593 442,60 | 74 262,29 | - |
| ....... | ....... | ....... | ....... | ....... | ....... | ....... |
| At the end of its useful life | ||||||
| 365 months | 82 459,02 | - | 1 639,35 | 1 639,35 | 74 262,29 | - |
| 366 months | 82 459,02 | - | 1 639,35 | 0 | 74 262,29 | - |
| In February, the cost of the industrial building and the deferred tax liability (DTL) will be written off in full | ||||||
End of example
Document flow
In accordance with clause 1 of Article 556 of the Civil Code of the Russian Federation, the fact of transfer of a real estate property is documented:
- deed of transfer;
- another transfer document.
Based on clause 81 of the Methodological Guidelines for Accounting of Fixed Assets No. 91n, the object is transferred by one party to the ownership of the other party under the acceptance and transfer certificate of fixed assets. The unified form of this primary document OS-1a was developed by the State Statistics Committee of Russia (Resolution No. 7 of January 21, 2003). The act is filled out and signed by both parties to the transaction, the seller and the buyer.
It is also worth noting that Part 4 of Article 9 of Law No. 402-FZ does not prohibit organizations from using their own forms to complete accounting transactions. In this case, the primary document must contain all the mandatory details provided for in Part 2 of Article 9 of Law No. 402-FZ.
The sale of a property entails a write-off from the balance sheet and the accrual of taxes. Considering the time interval between the transfer of an object under a deed and the registration of ownership of it, many questions arise. When to show income from the sale of an object? At what point should taxes be calculated and an invoice issued?
The transfer of ownership of real estate to the buyer under a sales agreement is subject to state registration. It is at this moment that the buyer has such a right (clause 2 of article 223, clause 1 of article 551 of the Civil Code of the Russian Federation). But until this point, the object is usually “transferred” by deed. Is the date of signing such an act important for accounting and calculating taxes? Let's figure it out.
At what point do we write it off the balance sheet?
In the article we consider the situation regarding the sale of real estate, which the company has been using in its activities for some time. The sale of a property is always accompanied by the submission of documents to register ownership of the property for the new owner of the building. Usually, some time passes between the moment the object is transferred under the deed and the moment the certificate of ownership is received. In this regard, the question arises: at what point should the building be written off from the balance sheet, and when should the proceeds from the sale be reflected in the accounting records?First, let's remember what conditions must be met in relation to property recognized as a fixed asset. These conditions are given in paragraph 4 of PBU 6/01 “Accounting for fixed assets”:
- the object is intended for use in the production of products, when performing work or providing services, for the management needs of the organization, or to be provided by the organization for a fee for temporary possession and use or for temporary use;
- the object is intended to be used for a long time, i.e. 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.
But with the reflection of proceeds from the sale of an object, the situation is different. One of the conditions for recognizing revenue in accounting is the transfer of ownership from the seller to the buyer (subparagraph “d”, paragraph 12 of PBU 9/99 “Income of the organization”). Accordingly, until the buyer's property rights are registered, the seller will not be able to record the proceeds from the sale of the property. In this regard, the question arises: in what account should the seller record the property to reflect the disposed property, if the transfer of the property and the state registration of the transfer of ownership occur in different reporting periods?
The Ministry of Finance of the Russian Federation in Letters dated January 27, 2012 No. 07-02-18/01, dated March 22, 2011 No. 07-02-10/20 notes that an account can be used to reflect a disposed fixed asset until the moment of recognition of income and expenses from its disposal 45 “Goods shipped” (separate subaccount “Transferred real estate”).
Income from the sale of an object is reflected in the Credit of account 91-1 “Other income”, in correspondence with the settlement accounts. Expenses in the form of residual value are reflected in accounting under the debit of account 91-2 “Other expenses” on the date of recognition of other income from the sale of an object (clauses 7, 10.1, 16 PBU 9/99 “Income of organizations”, clause 30 PBU 6/01 “Accounting for fixed assets”, paragraphs 11, 16, 19 PBU 10/99 “Expenses of organizations”).
We will show accounting entries using a practical example.
Example
Elochka LLC sold warehouse space to Zvezdochka LLC at a price of RUB 2,360,000. (including VAT - 360,000 rubles). The seller considered the premises as part of fixed assets (initial cost - 1,600,000 rubles, amount of accrued depreciation - 1,000,000 rubles). The premises were transferred to the buyer by deed in September 2015, the transfer of ownership to the new owner was registered in November 2015.
Accounts are made in the accounting of Elochka LLC.
In September 2015:
Debit 01-2 “Disposal of fixed assets” Credit 01-1 “Fixed assets in operation”
- 1,600,000 rub.- the initial cost of the premises was written off upon the signing of the transfer deed by the parties;
Debit 02 “Depreciation of fixed assets” Credit 01-2 “Disposal of fixed assets”
- 1,000,000 rub.- accrued depreciation is written off;
Debit 45 subaccount “Transferred real estate” Credit 01-2 “Disposal of fixed assets”
- 600,000 rub.(1,600,000 rubles - 1,000,000 rubles) - reflects the residual value of the premises transferred before the state registration of the transaction;
Debit 76 Credit 68 sub-account “VAT”
- 360,000 rub.- VAT is charged on the transferred warehouse premises.
In November 2015:
Debit 62 “Settlements with customers” Credit 91-1
- 2,360,000 rub.- revenue from the sale of the warehouse premises is reflected (after state registration of ownership).
Debit 91-2 Credit 76
- 360,000 rub.- previously accrued VAT is reflected;
Debit 91-2 Credit 45 subaccount “Transferred real estate”
- 600,000 rub.- the residual value of the premises is reflected in expenses;
Debit 91-2 Credit 99
- RUB 1,400,000(RUB 2,360,000 - RUB 360,000 - RUB 600,000) - the financial result (profit) from the sale of real estate has been determined.
Property tax
According to paragraph 1 of Article 374 of the Tax Code of the Russian Federation, the object of property taxation is, in particular, real estate recorded on the balance sheet as fixed assets.We concluded that the property is written off from accounting at the time of its transfer under the deed. Accordingly, after the date specified in the transfer deed, the value of such real estate will not participate in the calculation of property taxes.
We calculate VAT
The sale of real estate always entails the accrual of VAT, unless, of course, the seller is on a “simplified” basis and does not apply the VAT exemption under Article 145 of the Tax Code of the Russian Federation.At what point does VAT need to be calculated? The answer to this question is contained in paragraph 16 of Article 167 of the Tax Code of the Russian Federation. It says that when selling real estate, the date of shipment is the day the real estate is transferred to the buyer of this property under a transfer deed or other document on the transfer of real estate. Accordingly, no later than 5 days from the date of signing the act, the seller must draw up an invoice (clause 3 of Article 168 of the Tax Code of the Russian Federation).
The VAT tax base should include the sale value of the object excluding tax (Clause 1, Article 154 of the Tax Code of the Russian Federation). Multiplying this cost by the VAT rate of 18 percent, we get the amount of tax that should be paid to the budget.
However, in some cases, VAT is calculated not on the sale price, but on the difference between the sale and residual value of the fixed asset. In this case, the residual value is determined according to accounting data (Letters of the Ministry of Finance of Russia dated March 26, 2007 No. 03-07-05/16, dated October 9, 2006 No. 03-04-11/120). This procedure applies to those objects that, upon purchase, were capitalized taking into account the “input” VAT, that is, these are those objects that were purchased with VAT, but for which, for legal reasons, VAT was not accepted for deduction (clause 3 of Article 154 Tax Code of the Russian Federation). This happens, for example, when at the time of acquiring the operating system the company applied a special tax regime. If this difference is positive, then VAT is calculated at the tax rate of 18/118 (clause 4 of Article 164 of the Tax Code of the Russian Federation, Letter of the Ministry of Finance of Russia dated July 3, 2012 No. 03-07-05/18).
When the tax base is zero, namely if the above difference is negative (real estate sold at a loss) or zero (real estate sold at residual value), VAT is not paid.
If we are talking about the sale of residential real estate, then a VAT benefit applies to it (subclause 22, clause 3, article 149 of the Tax Code of the Russian Federation).
Income tax
For profit tax purposes, income from sales includes proceeds from the sale of an object minus VAT (Clause 1, Article 248 of the Tax Code of the Russian Federation, Article 249 of the Tax Code of the Russian Federation). When exactly does income from the sale of real estate arise?The answer to this question is given in paragraph 3 of Article 271 of the Tax Code of the Russian Federation. It says that the date of sale of real estate is the date of transfer of real estate to the acquirer of this property under a transfer deed or other document on the transfer of real estate.
The property is depreciable property. And according to paragraph 1 of Article 268 of the Tax Code of the Russian Federation, when selling depreciable property, the taxpayer has the right to reduce income by the residual value of this property. If the residual value turns out to be greater than the sales value, then the difference will be a loss from the sale of the fixed asset. Such a loss is allowed to be written off in order to reduce taxable profit. The amount of the loss is included in the taxpayer’s other expenses in equal shares over a period defined as the difference between the useful life of this property and the actual period of its operation until the moment of sale (clause 3 of Article 268 of the Tax Code of the Russian Federation).
