Conservation of the building. Accounting for conservation of fixed assets

Conservation of fixed assets is carried out when they are temporarily not in use. This procedure is present in the practice of many companies.

Order on conservation of fixed assets

This document is mandatory. The management decision must include the following information:

1. Reasons for temporary non-use of the OS.
2. Preservation period of fixed assets.
3. Positions of responsible employees.

The manager appoints specialists who are responsible for both the immediate conservation and subsequent re-preservation of fixed assets. In addition, persons are identified to ensure their proper storage during temporary downtime.

Additional design

Employees must take inventory and compile relevant act conservation of fixed assets. This document confirms the fact of the transaction. The order acts as a document certifying the enterprise’s intention to mothball fixed assets. The actual implementation of the procedure cannot be confirmed by this document. The transfer of fixed assets for conservation involves the implementation of a number of activities. These include bringing temporarily unused assets to a state that will ensure their proper storage. When the OS is put back into production, appropriate measures are taken to bring them into a form suitable for use. The legislation does not provide for unified forms of acts. The company has the right to develop them independently.

Depreciation

When removing the OS from the active state for a period of more than 3 months. it is not credited. It will be possible to resume the calculation of depreciation after putting it back into operation. Accounting for the conservation of fixed assets is carried out in accordance with Rules 6/01 and Methodological Instructions. Extension of period beneficial use more than three months is not provided. But in accounting, depreciation can be calculated even after this time. In this regard, after the return of fixed assets to the asset, calculations are carried out in the same way as before their withdrawal.

Termination and resumption of accruals

Many experts have a question: from what time should they suspend and then begin calculating depreciation for fixed assets transferred to conservation for a period of more than 3 months? The company sets the month for termination and resumption of accruals independently. The option that will be chosen must be recorded in its accounting policy. The legislation does not establish a specific moment for stopping and resuming payments for funds mothballed for more than 3 months. The accounting policy should record one of the following options:

1. Depreciation charges are suspended from the 1st day of the month when fixed assets were mothballed. The calculation should be resumed from the first day of the period in which the OS was put back into production.
2. Accrual stops on the 1st day of the month following the month during which the fixed assets were mothballed. The calculation is resumed from the first day of the period that follows the period during which the OS was put into production.

In the accounting policy, it is advisable to establish the same procedure for suspending and resuming depreciation charges for fixed assets mothballed for a period of more than 3 months, as in tax accounting. This will avoid the occurrence of temporary differences. They may lead to the formation of deferred tax liabilities.

Fixed assets: conservation (1C)

To reflect the operation in the program, the document “Change in the status of fixed assets” is entered. It is designed to stop or resume depreciation. Next, you need to select “Event” - “Preservation” from the OS operations directory. Type of procedure "Depreciation calculation". A check mark is placed in the “Affects on calculation” column. The "Calculate depreciation" field remains unchecked. When depreserving, the document “Change in the state of the main equipment” is entered. Next, select "Event". It will be “Removal from preservation” with the view “Accrual of depreciation”. In the “Affects on accrual” column, you need to check the box. The "Accrue depreciation" field is also checked.

Reporting

The enterprise is obliged to record operating systems according to the degree of their use:

• in operation;
• in reserve (stock);
• in temporary non-use and so on.

This rule is established in Guidelines No. 91n. You can record the state of the OS in accordance with their use with or without reflection on the account. 01 (03). If conservation of fixed assets is carried out for a period of more than 3 months, it is advisable to show them in a separate sub-account. When releasing the OS back into production, the following should be reflected:

Db 01 (03), subaccount. "OS in operation"

Kt 01 (03), subaccount. "OS on conservation"

Reactivated.

In the process of carrying out these procedures with assets, costs may arise. For example, it could be material costs for packaging, installation/dismantling of equipment, and so on. If such costs appear when the disposal and conservation of fixed assets is carried out, the postings will be as follows:

Db 91-2 Kt 10 (23, 68, 60, 69...)

The costs of depreservation, conservation and storage of OS are included.

BASIC: taxation of profits

Tax treatment of expenses will depend on the purpose of the property being conserved. If operating systems are used in the non-production sector, then costs are not taken into account. This is due to the fact that these expenses will not be justified in an economic sense; they do not relate to the company’s income-generating activities. If fixed assets under conservation are used in production, then the costs will reduce the profit tax base. The costs of putting the OS into temporary non-use are included in non-operating expenses.

Accrual methods

When calculating, the tax base is reduced in the period to which non-operating expenses relate. Expenses for restoration and conservation are reflected in the time period in which the corresponding act was signed. It is during this period that costs are considered economically justified. Expenses for the maintenance of temporarily unused operating systems are reflected in the period of time in which they were incurred. For example, lubricants are accounted for when documents have been signed to prove their use. If the enterprise uses cash method, then, in addition to the above requirements, it is necessary that the costs be paid.

Other costs

The question often arises whether it is possible to include utility bills, lighting and security costs for a building under conservation in the calculation of income tax. Yes, these expenses are included in non-operating expenses. This provision is present in Art. 265, clause 1, sub. 9 NK. The enterprise, therefore, has the right to reflect in tax reporting costs aimed at maintaining preserved OS in proper condition. At the same time, according to Art. 252, paragraph 1 of the Tax Code, it is necessary to have documentary evidence and economic justification these expenses. The costs that entail the conservation of fixed assets aimed at servicing farms and production should be reflected separately.

VAT at OSNO

The procedure for conserving fixed assets does not provide for the restoration of value added tax from their residual price. But while the OS is in an unused state or when it is returned to an asset, the enterprise may have an obligation to charge VAT. The tax should be restored in cases where:

1. OS is transferred to authorized capital another company.
2. The company switches from OSNO to UTII or simplified tax system.
3. The use of VAT exemption has begun.
4. After reactivation, the fixed asset is used to perform operations that are not subject to this tax.

These requirements are established in Art. 170, paragraph 3 of the Tax Code.

Important point

Some experts are interested in whether it is allowed to deduct VAT on the cost of services/work/materials that were purchased for conservation/re-preservation and maintenance of unused fixed assets. This procedure is permitted if the company subsequently uses OS in processes subject to the above tax. This is due to the fact that conservation of fixed assets acts as the best option ensuring the safety of assets. In this regard, the deduction of tax on the cost of auxiliary materials/services/work will depend on the purpose of the OS after putting it back into use. If, after reactivation, the company intends to use funds in processes subject to VAT, then the expenses that will arise during the transfer to conservation will be associated with activities that also provide for this accrual. In such cases, the amount is deducted according to the usual rules.

In other words, accrual is carried out after the specified services/work/materials are accepted for accounting in the presence of a document (invoice). This provision is established in Art. 172, paragraph 1 of the Tax Code. If the fixed assets will be used in tax-free operations, then input VAT is included in the cost of the auxiliary equipment required for their conservation. At the same time, there is another point of view on this issue. One of the main conditions for applying the deduction is the use of work/materials/services to perform operations subject to VAT. This requirement is present in Art. 171, paragraph 2 of the Tax Code.

Since conservation of fixed assets does not provide for their use in activities that are subject to VAT, there is no reason for the company to use the deduction. In addition, the process itself represents certain operations performed to own needs companies. Costs that arise as a result of conservation reduce taxable income as non-operating expenses. This provision is present in Art. 265, clause 1, sub. 9. The execution of these works is not subject to VAT in accordance with Art. 146, paragraph 1, sub. 2. In this regard, the organization in this case has no right to a deduction.

Transport and property tax

While fixed assets are under conservation, they do not cease to be taxed:

1. Transport tax. This requirement is established by Article 358 of the Tax Code.
2. Property tax. This provision is contained in Art. 375 NK. An exception is property that has been registered as a fixed asset since January 1, 2013.

simplified tax system

The tax base of a company using a simplified system that pays a single tax on income is not reduced by the costs of preserving fixed assets. With the simplified tax system, no costs are included in the calculation. This provision is fixed in Art. 346.18, paragraph 1 of the Tax Code. For enterprises using a simplified system and paying a single tax based on the difference between expenses and income, costs associated with conservation reduce the base if they are included in the list of Article 346.16 of the Tax Code. For example, these could be:

• Materials (packaging, lubricants, etc.) necessary for maintaining the OS.
• Salaries of conservation staff.

The tax base decreases as costs are incurred and paid.

Other expenses

Do the simplified taxation system take into account the costs of acquiring operating systems that are mothballed for a period of more than three months? No, they are not included in the calculations. The tax base when using the “simplified tax” can be reduced by the costs of purchasing fixed assets recognized as depreciable property in accordance with Chapter. 25 NK. In particular, this provision is provided for in Art. 346.16. Accounting for fixed assets involves excluding temporarily unused fixed assets from depreciable property.

UTII

Under such a system, imputed income is subject to taxation. In this regard, expenses related to the conservation of fixed assets do not affect the calculation of the base. If an enterprise combines UTII and OSNO, then the calculation will depend on the purpose of the OS. If they are used exclusively when carrying out activities on the general system, then accounting for fixed assets, as well as the costs of removing them from assets for temporary non-use, is carried out according to the rules in force for this taxation regime. This provision is established in Art. 346.26 and art. 274 NK. If fixed assets are used only for transactions on UTII, then no expenses are taken into account in the database single tax, since the object of taxation is imputed income. This requirement is fixed in Art. 346.29 Tax Code. If the OS is used for activities carried out on both systems, then input VAT and conservation costs should be shared.

Example

By order of the head of JSC Firma, in July the production line was mothballed for 4 months. Its initial cost is 780 thousand rubles. The company uses linear method when calculating depreciation, pays quarterly income tax and applies the accrual method. The company does not carry out transactions that are not subject to VAT. In July, conservation costs were:

1. Material costs - 500 rubles. (packaging and lubricants).
2. Salary of specialists - 1000 rubles. (including insurance premiums).

The line was re-opened in November. The costs of the work consisted of the salaries of the specialists who carried out the conservation (including insurance premiums). From August to November, the accounting department did not accrue depreciation of the temporarily unused production line for tax and financial statements. The calculation was resumed in December. Both before and after conservation, the monthly depreciation amount was 13 thousand rubles. The following entries were made in the documentation:

In July:

Debit 01 subaccount. "OS on conservation"

Credit 01 subaccount. "OS in operation"

780 thousand rubles. - the production line was mothballed.

Debit 91-2 Credit 10 (69, 70)

1500 rub. (500+1000) - costs of conservation work are taken into account.

Debit 25 Credit 02

13 thousand rubles. - depreciation has been calculated.

In November:

Debit 01 subaccount. "Fixed assets in operation"

Credit 01 subaccount. "OS on conservation"

780 thousand rubles. - reactivation of the production line.

Debit 91-2 Credit 70 (69)

1000 rub. - included the costs of performing depreservation work.

December:

Debit 25 Credit 01

13 thousand rubles. - calculation of depreciation on the production line.

VAT (input) on the cost of materials that were used to carry out conservation work was accepted by the accounting department for deduction. The residual value of the production line, which was temporarily unused, was included in the property tax calculation. The tax base for profits was reduced by the amount of expenses incurred during the work on conservation and re-preservation of the production line:

1. 1500 rub. (500+1000) were included in the calculations when preparing the income tax return for 9 months. the current reporting year.
2. 1000 rub. were taken into account when preparing reporting documents for mandatory deduction from the profit for the year.

Conclusion

Thus, conservation of fixed assets is a documented process of transferring fixed assets to a state of non-use. Preparation of reporting documentation and tax calculations depend on the system the company uses. As a rule, when calculating the base and determining depreciation amounts, no special problems arise.

Scheme for recording the receipt of fixed assets

Situations in which the construction of facilities stops for a while certain period, occur quite often. The most common reason for this to happen is a lack of funding, but sites are often mothballed due to unfavorable weather conditions.

The conservation of unfinished facilities in the future provides for the resumption construction work, therefore, contract agreements are most often not terminated, but suspended for a while.

The conservation of the ONS should not be confused with the cessation of construction work. If construction is stopped, the resumption of construction of the facility is not excluded, but only if the investor changes (as opposed to conservation, in which the same investor will have to invest in construction).

Objects whose construction has been stopped may be liquidated or sold to other investors who have the necessary financial resources.

When construction is stopped, significant disagreements may arise between customers and contractors, the reason for which may be the specific nature of the unfinished facility as a type of property of the organization. On the one hand, such an object refers to non-current assets organization, and on the other hand, during construction and installation work, all risks associated with the condition of the facility are borne by the contractor.

When is conservation required?

According to current legislation, the decision to mothball the facility should be made if construction is suspended for more than six months. It must be taken into account that conservation may have negative consequences for the owner of an unfinished building. For example, if the site was used on the basis of a lease agreement, after the expiration of its validity period, the land may be withdrawn.

During conservation, many other agreements may expire. But sometimes conservation is the only the right way out from the current situation. The decision to mothball an unfinished object must be made by the customer and formalized by an appropriate order, which must indicate the time frame for carrying out work on inventorying the object and developing the documentation required for its conservation.

The customer communicates his decision to the contractor, with whom he then organizes all the necessary work.

The procedure for preserving the object

To preserve the facility, a special inventory commission is created, which includes representatives of the customer, contractors and design organizations.

This commission is responsible for drawing up inventory lists, which indicate: the name of the object; list of object elements; stage of readiness of construction and installation work on the facility.

The commission also checks the cost of the work performed. It can identify violations associated with incorrect application of estimate standards or the inclusion in the cost of work of expenses that are not related to direct construction. If violations are detected by the customer, appropriate changes are made to the documentation.

Documentation of the procedure involves the signing by the subjects of the contract of an act on the suspension of construction work (form KS-17), which contains information about estimated cost works, identification of completed activities, information on costs incurred by the developer.
This act is the basis for drawing up a list of measures necessary to protect structures and materials from external influences and for approving the conservation estimate for the facility.

Drawing up a conservation project for an object

The conservation project of the facility must be agreed upon with the customer and must include:

• a concise description of the structures located at the site;
• results of the inspection of structures and a list of measures that need to be taken to strengthen them and prevent destruction;
• a list of measures that should be implemented to prevent negative climate impacts (arrangement of temporary roofing, waterproofing, etc.);
• a list of measures that must be taken to fence the facility and protect it from unauthorized persons.

Based of this project are carried out practical work, all costs for which are borne by the customer.

The list of works and their cost are fixed in an additional agreement to the contract.

The same document stipulates the deadlines for completing the work, handing over the mothballed facility and compensation by the customer for all necessary costs incurred by the contractor. After completion of this work, the customer must organize proper security of the facility.

Execution of work

If conservation of an unfinished construction project is not properly carried out, there may be a risk of loss of completed construction activities, a decrease in their quality and operational parameters. The objects of conservation are building construction, engineering and communication networks, foundations, building materials and structures located on the site.

When performing conservation measures, special attention should be paid to:

• protecting the object from moisture (precipitation, groundwater);
• protecting the foundations of the facility from freezing;
• fixation of moving elements of building structures.

Effective solutions for conservation are:

• backfilling of soil near the foundation, performing actions to protect against flooding;
• insulation of window and door openings during conservation;
• thermal insulation of foundation soils and building foundations.

Enterprises that have a lot of fixed assets on their balance sheet are often forced to transfer them to conservation. This process means the cessation of operation of the property for a certain period with the possibility of its further commissioning. Today we will talk about how conservation of fixed assets is documented and what taxation features are inherent in this process.

Why do you need to preserve the OS?

Activities carried out during conservation make it possible not only to preserve the property intact, but also to repair it if necessary. Transferring property for conservation is not a mandatory process. But if you still decide to hold these events, then you should arrange them correctly. Properly prepared tax and accounting records allow you to recognize expenses when calculating income tax.

First, an order is issued signed by the manager, where mandatory indicated full list required measures, reasons and deadline for transferring objects to conservation. You can find a sample order.

Now you need to fill out a property conservation act. Please note that this unified form does not exist, so the document can be drawn up in any form. The document must be signed by all members of the commission, as well as by the head of the company. The act must reflect the following points:

• List of objects subject to withdrawal from production.
• Conservation start date.
• List of activities that need to be carried out during OS downtime.
• Calculation of costs for the process as a whole.

This form is the primary documentation that allows:

• Take into account all conservation costs.
• Do not charge depreciation on objects located outside the production process for longer than a quarter.

How to do accounting

Despite the fact that the property has been transferred to conservation, it is and continues to be listed as part of the operating system in account 01. However, the procedure for withdrawing funds from the production process requires maintaining separate records of such objects, so it is more expedient to open additional sub-accounts to maintain their records.

If the downtime of an object is less than three months, then the calculation of depreciation for it is not interrupted and proceeds as usual. But if the activities are delayed for a longer period, then the calculation of depreciation charges is suspended (PBU 6/01 clause 23).

If the downtime of an object is less than three months, then the calculation of depreciation for it is not interrupted and proceeds as usual.

And yet, in accounting there is such a thing as useful life. So, despite the long-term conservation, this indicator does not stop. Therefore, after the process is completed, the calculation will proceed as before. According to PBU 6/01, clause 14, expenses aimed at preserving objects during conservation are subsequently attributed by the accountant to their original cost.

Please note that the maximum conservation period is not established by law. The enterprise can undergo either partial or complete conservation, depending on the goals pursued. If the purpose of the measures is to carry out repairs of individual objects, then a partial withdrawal of funds from production is carried out. But if an enterprise suspends operations due to a crisis situation, then it is more advisable to carry out complete mothballing.

So, approximate step-by-step instruction activities are as follows:

1. Making a decision on the need for conservation by the company's management.
2. Execution of an order based on the decision made.
3. Conducting an OS inventory.
4. Drawing up an act on the transfer of free-form objects for conservation.
5. Reflection of information about the withdrawal of fixed assets from production on accounts accounting.

There are also nuances

Conservation of OS affects three main taxes:

• Property tax.
• Income tax.

If an enterprise is a VAT payer, then when purchasing fixed assets from an enterprise, “input VAT” is deductible, as indicated by Art. 172 of the Tax Code of the Russian Federation. When transferring objects to conservation, there is no need to restore the tax. When calculating property tax, mothballed properties do not leave the tax base.

However, in some regions there are benefits that allow you not to charge taxes on objects that are under conservation. If your region has such a provision, you can take advantage of it. Expenses reflected when calculating income tax allow for the accounting of costs associated with both conservation and reactivation of production (Article 265 of the Tax Code of the Russian Federation). In 2017, there were no changes affecting this process.

The need to systematically use economic activity all fixed assets on the balance sheet of an enterprise are not always economically justified. Some labor equipment is intended for seasonal work, some are idle due to the completion or freezing of the project. Often production capacity enterprises are not in full demand during the period economic crisis and reduction in production volumes. In such cases, a reasonable solution would be to transfer for conservation that property that is temporarily unprofitable or impossible to operate for various reasons. In this case, you should understand the rules of accounting and tax accounting, which have certain nuances.

What is conservation?

Conservation is understood as a set of actions to long-term storage property, in particular fixed assets, upon termination, reduction, change of production and economic activities by the enterprise with the possibility of their use in the future if conditions change. Conservation is justified when the operation of fixed assets temporarily does not bring economic benefit to the business entity.

The period of time for which objects can be mothballed cannot be more than 3 years.

Before starting the procedure, a project should be drawn up based on the recommendations of the commission.

How to do it?

The head of the organization or executive authorities make a decision on the feasibility and necessity of conservation. This is reflected in the order. The same document establishes the composition of the commission, which will deal with all issues related to conservation.

The decision of the management of an economic entity must be supported by a feasibility study that it is not economically feasible to continue using fixed assets. In addition to the justification, a conservation project must be developed by a specially created commission. Then the commission draws up an act on the temporary withdrawal of fixed assets from operation and their conservation. It must be signed by all its members and materially responsible persons who own this property.

What documents should I submit?

• Documentation of the property conservation process has the following features:
• the manager’s order must contain information about the reasons, the period of conservation, the composition of the commission responsible for this action, as well as a list of employees responsible for the safety of the object during conservation;
• the act of transferring a fixed asset for conservation does not have any unified form, so the enterprise needs to develop it independently and consolidate it in its accounting policies;

The enterprise needs to develop a form of depreservation act, which will be needed when the conservation period ends.

Depreciation. Features of accrual

For accounting of mothballed fixed assets, the following feature must be taken into account. The duration of conservation of property does not affect its useful life. Once the mothballed assets are put back into use, depreciation will be charged until the full cost is paid off.

Period of termination and restoration of depreciation

The period from which they cease or, conversely, are restored depreciation deductions, in accounting, the organization determines at its own discretion. But the chosen method must be recorded in the accounting policy of the enterprise.

The legislation does not contain specific instructions on when to stop or resume calculating the depreciation of property after conservation.

Options for calculating depreciation of fixed assets for conservation

When making a choice in favor of one or another calculation method, you should take into account that it is more convenient when accounting and tax accounting in an enterprise are as close to each other as possible. To prevent temporary differences from arising subsequently, the rules for calculating depreciation of property in accounting must be the same as for calculating income tax payments, that is, according to the second version of the table.

Accounting for fixed assets

Each organization must keep records of fixed assets based on their use. The cost of property in operation, conservation or in reserve should be reflected separately. Objects mothballed for more than 3 months are accounted for in a special subaccount of account 01.

Dt01 “Fixed assets in conservation” Kt01 “Fixed assets in operation” - for the initial cost of the preserved property;

Dt01 “Fixed asset in operation” Kt01 “Fixed asset in conservation” - for the initial cost of the reactivated property The transfer of fixed assets for conservation, as well as their maintenance during this period, will require certain expenses

. Such costs are taken into account on account 91/2 “Other expenses”.

Dt91/2 Kt10, 23, 60, 69, 70 – for the amount of expenses for conservation of fixed assets Example 1. In accordance with the order of the director of the enterprise, the refrigeration unit original cost 700,000 rubles were transferred to conservation from September 2, 2015 to April 2, 2016. it is stipulated that depreciation ceases to accrue from the month following the date of preservation, and also resumes in the next month after commissioning. During the conservation procedure, materials worth 2,000 rubles were spent, wages were accrued, including taxes - 6,000 rubles. The amount of depreciation per month is 10,000 rubles.

Tax accounting during conservation of fixed assets

Income tax

Property conservation costs can be accounted for in different ways. The procedure for their accounting depends on the area of ​​application of the property.

If it is used for the production of products, then such expenses reduce the tax base for income tax.

If the enterprise uses the accrual method, then the base should be reduced to the extent tax period to which they belong. For example:

• costs incurred in the process of conservation or re-conservation of property reduce tax base the period in which they were produced. You should be guided by the date of signing the act of transferring the fixed asset for conservation;
• costs arising from the maintenance of mothballed property are taken into account as they arise, that is, when the relevant primary documents are signed.

If a business entity uses the cash method of accounting, then to reduce the tax base, the above requirements are applied with additional condition– all expenses must not only be confirmed by documents, but also paid.

If property is used in a non-productive area, expenses associated with its conservation do not reduce taxable profit.

Example 2. By order of the director, a refrigeration unit with an initial cost of 700,000 rubles was mothballed from September 2, 2015 to April 2, 2016. All transactions carried out by this business entity are subject to VAT. During the conservation procedure in September, materials worth 2,000 rubles were spent, wages were accrued, including taxes - 6,000 rubles. The amount of depreciation per month is 10,000 rubles.

In April 2015 An enterprise accountant can reduce the tax base for income tax by 8,000 rubles (6,000+2,000). In addition, starting from May 2016, the tax base will be reduced monthly by the amount of depreciation (10,000 rubles).

VAT on conservation of fixed assets

When mothballing a fixed asset, input VAT does not need to be restored. But in some cases the need may arise:

• if the mothballed property is transferred to the authorized capital of another enterprise;
• if the company changes tax regime, for example, goes from common system on UTII or simplified;
• if the company has the opportunity to be exempt from VAT;
• if the property after re-conservation will be used for activities not subject to VAT.

Conservation of property is not a reason to exempt an enterprise from the accrual and payment of property tax and transport tax. If a vehicle is mothballed and remains registered with the traffic police, it means transport tax will have to be charged. In addition, the amount of property tax will become slightly higher when the property is mothballed than during its operation. This is due to the fact that when depreciation is suspended, the value of the property under conservation does not decrease. Consequently, the amount of property tax is higher than for a similar property in operation.

Answers to questions on conservation of fixed assets

Question 1. The company has transferred the premises to conservation. Must be paid monthly wages security guard and electricity consumption for lighting. Will these costs reduce the amount of income tax?

Answer. Yes, these expenses should be considered as non-operating expenses. Provided that such costs have an economic justification and documentary evidence, they will reduce the amount of the taxable base for income tax.

Question 2. To reduce planned losses, the enterprise decided to mothball all unused equipment. What time period would be optimal?

Answer. In order to reduce the costs of the enterprise through depreciation, the property should be placed into conservation for a period of at least 3 months. Only such a period makes it possible to suspend the accrual of depreciation of fixed assets.

Question 3. Does the organization retain the obligation to charge transport tax on a car that is on the balance sheet, transferred to conservation and does not have license plates?

Answer. No, you do not need to pay transport tax in such a situation. The obligation to pay it remains for property registered with the traffic police. This means that the car must have a passport, license plate and vehicle registration certificate. If the license plates have already been submitted to the traffic police, then the car cannot be used for its intended purpose and is not subject to transport tax.

Question 4. The organization applies a simplified taxation system. Is it possible to reduce income by the amount of costs for preserving fixed assets?

Answer. If an enterprise charges tax on income, then in this case the amount of expenses does not matter. When an organization charges taxes on the difference between income and expenses, income can be reduced by those items that are listed in Article 346 of the Tax Code of the Russian Federation, for example, the consumption of materials for maintaining property under conservation.

Question 5. The company purchased the machine and mothballed it for 1 year. Is it possible to take into account the costs of its acquisition when calculating the taxable base under the simplified tax system?

Answer. No, under this tax system, only those acquisition costs that relate to depreciable property can be counted. Since the machine has been put into storage for 1 year, no depreciation will be charged on it.

Conservation of fixed assets is used during periods of inactivity. This event is a right, but not an obligation of the employer.

What is OS conservation?

Fixed assets are the property of the company. These include land plots, buildings, equipment, etc. Conservation of fixed assets is a set of measures to temporarily shut down the operation of one or more fixed assets. The main feature of the event under consideration is the introduction of the OS into operation after the period specified in the documents.

The essence of the procedure is explained by its name. Conservation means preservation. The purpose of the event is to preserve the quality and characteristics of the OS, the amount of funds in current accounts. At the same time, operating costs are also reduced or eliminated altogether. At the same time, the OS does not bring any profit.

IMPORTANT! Maximum term conservation period is 3 years. In some cases it can be extended.

In what cases is conservation carried out?

Conservation is relevant in the following circumstances:

• Seasonal work has ended, and therefore the equipment ceases to be used until the next season. For example, the company uses snow removal equipment in winter. Naturally, it is not used in the summer. In this case, conservation becomes relevant.
• Temporary downtime at the enterprise. For example, an insufficient number of threads was supplied to production. Due to this, work cannot continue. Until the threads are delivered in full, the operation of the equipment is suspended.
• Due to lack of funds and economic inefficiency, cuts were made. For example, a workshop closed.
• The OS broke down and was sent for repair.

That is, conservation is needed when the OS is temporarily not in use for various reasons.

Consequences of conservation of fixed assets

Conservation is divided into two main stages:

1. Actual completion of operation.
2. Recording information in relevant documents, as well as in the accounting program.

Conservation involves documenting. This is a voluntary procedure. That is, the entrepreneur does not have to draw up documents. You can simply stop using it. On the other hand, it is beneficial for a person to carry out full conservation. Let's consider the consequences of this procedure:

• Income tax is reduced. Expenses for maintenance, wages, depreciation, etc. may be included. The tax base is reduced by the amount of these expenses on the basis that the operating system ceases to be used for the purpose of making a profit.
• Depreciation will not be charged for storage lasting 3 months or more. The basis for determining the company's property tax will not be reduced due to the fact that residual value OS does not decrease.
• The useful life is extended by the duration of depreciation.
• It becomes more convenient to do accounting. The accountant opens subaccount 01 “OS on conservation”. In 1C it is possible to disable depreciation charges for unused operating systems.

Conservation has more advantages than disadvantages, and therefore it is used quite often.

What fixed assets are subject to conservation?

You can preserve any object that belongs to the OS. That is, which is recorded on account 01. To indicate an item on this account, the following conditions must be met:

• The OS is used as part of production; it is required either for the operation of the company or for managing it. For example, a company car belongs to the OS, but a marble monument does not.
• The facility has been in operation for more than a year. That is, objects of short-term use (packaging, etc.) will not be classified as fixed assets.
• The company has no plans to resell the item. For example, property acquired for further sale is not classified as fixed assets.
• The object is expected to bring benefits. Eg, land plot company is used for planting vegetables for their further sale.

The fixed assets will include buildings, service vehicles, equipment, office equipment, natural resources.

ATTENTION! Natural resources are not preserved, since depreciation is not charged on them. That is, the motivation to carry out the event is lost.

The procedure for registering conservation of fixed assets

The design of conservation is regulated in detail for budget and government agencies. Procedure for commercial organizations is less strict. Conservation is divided into the following stages:

1. On general meeting a decision on conservation is made.
2. Based on the decision, an order is drawn up.
3. An inventory of fixed assets is carried out.
4. The act of transferring the OS for preservation is being carried out.
5. The changed status of the property is recorded in the 1C program.

An order is drawn up to transfer the OS into conservation. It is needed to record the intentions of management. This is the required paper. It must bear the signature of the head of the company. The document contains the following information:

• Reasons for transferring an object to conservation.
• Preservation period.
• Persons responsible for the procedure.

A conservation act is also drawn up. It is needed to record a procedure that has already been completed. Compiled at the request of the manager. The document is signed by the commission members and the head. It contains the following information:

• List of objects that are conserved.
• Start date of the procedure.
• Expenses for conservation.

The document is drawn up in any form.

Nuances of paying taxes

As part of conservation, both transport tax and property tax are paid. If the organization is located on tax burden is reduced by this amount. There is no need to recover VAT. However, sometimes such a need arises:

• Mothballed fixed assets are transferred to the authorized capital of another company.
• The company switches to a different tax system.
• The property, after the termination of conservation, will be used in work that is not subject to VAT.

In all these cases you need to look primary documentation, and then restore VAT.

Accounting for conservation of fixed assets

The transfer of fixed assets for preservation is recorded in accounting after the order is signed and the act is approved. Even after the object is transferred to conservation, it continues to be included in the OS. To record objects in accounting, a sub-account “Assets for conservation” is opened.

Conservation involves a number of expenses. For example, transportation costs. They belong to non-operating expenses, since they do not take part in production.

The process of completing conservation

It is important not only to correctly enter an item into conservation, but also to remove it from conservation.

Re-preservation is carried out when a decision is made about the need to operate the facilities or upon expiration of the conservation period. This decision must be formalized using an order to terminate conservation.

After re-opening, depreciation begins to accrue. Accrual begins on the first day of the month following the month the order to terminate the preservation of the object was issued.