The organization rented a room that previously housed a workshop. The term of the lease agreement is 4 years. At the moment, the lease agreement is submitted for registration as long-term. The premises have been renovated (installation of new windows, plasterboard partitions, floor filling). Sewerage was installed, toilets and showers were installed, and a mezzanine was built in the middle of the workshop to form a second floor with offices, a kitchen and a meeting room. The work was carried out in stages by different contractors and was carried out with the consent of the lessor. The cost of expenses will not be reimbursed by the lessor. The obligation to carry out repairs is assigned to the tenant under the lease agreement.
What is the procedure for accounting for expenses for work in accounting and for profit tax purposes?
Is it possible to deduct VAT on work and acquired material assets for carrying out this work?

On this issue we take the following position:
The safest thing from a tax point of view would be to take into account the entire complex of work on converting a workshop building into an office as capital costs for improving the leased property.
At the same time, work on replacing windows, doors, and filling floors can be attributed to the costs of major repairs. Therefore, the costs of these works can be taken into account in both accounting and tax accounting at the same time, regardless of the cost of these works. However, we cannot exclude the possibility of claims from inspectors.
Work on the construction of a mezzanine and partitions, equipping bathrooms, laying new communications (sewage, water supply, etc.) can be attributed to the costs of reconstruction and additional equipment of a rented workshop. These works form the cost of inseparable improvements, which for accounting purposes are recognized as fixed assets, and for profit tax purposes - as depreciable property.
VAT presented by contractors and suppliers of material assets is accepted for deduction in the generally established manner.

Justification for the position:
Under a lease agreement, the lessor undertakes to provide the tenant with property for a fee for temporary possession and use or for temporary use (Civil Code of the Russian Federation).
Upon termination of the lease agreement, the tenant is obliged to return the property to the lessor in the condition in which he received it, taking into account normal wear and tear or in the condition stipulated by the agreement (Civil Code of the Russian Federation).
By virtue of the Civil Code of the Russian Federation, the tenant is obliged to carry out only current repairs, and the lessor is obliged to carry out major repairs, unless otherwise provided by the contract. That is, the lease agreement may also provide for the tenant’s obligation to carry out major repairs of the leased property.
In accordance with the Civil Code of the Russian Federation, improvements to leased property can be separable and inseparable. Separable improvements to the leased property made by the tenant are his property, unless otherwise provided by the lease agreement (Civil Code of the Russian Federation).
Inseparable improvements are those that cannot be separated from the leased item without harm to it.
The criteria for separability of improvements are not normatively established. Therefore, in each specific case, the possibility of dismantling improvements without causing damage to the leased property is assessed. The existing judicial practice on this issue is contradictory.
So, for example, in the Federal Antimonopoly Service of the Central District dated 04/07/2011 N F10-1189/11, the court indicated that doors, a cash register built into the wall, a security system, an air conditioning and ventilation system, a cable system can be used for general purposes in conjunction with the rented premises, this property is an integral part of a complex thing (Civil Code of the Russian Federation) and dismantling this property can cause significant damage to the premises and cause the need for repair work. Therefore, all these things are inseparable improvements.
In the Seventeenth Arbitration Court of Appeal dated August 17, 2016 N 17AP-9508/16, the court recognized built-in split air conditioning systems and partitions rigidly attached to the floor and ceiling of non-residential premises as inseparable improvements (see also Tenth Arbitration Court of Appeal dated July 17, 2013 N 10AP -5618/13).
And in the Tenth Arbitration Court of Appeal dated 02/03/2011 N 10AP-7759/2010, doors, roller shutters, security systems, air conditioning and ventilation systems, and a structured cable system were classified by the court as separable improvements.
Inseparable improvements made by the tenant remain the property of the lessor upon expiration of the lease agreement.
Moreover, according to the Civil Code of the Russian Federation, in the case where the tenant has made, at his own expense and with the consent of the lessor, improvements to the leased property that cannot be separated without harm to the property, the tenant has the right, after termination of the contract, to reimburse the cost of these improvements, unless otherwise provided by the lease agreement.
If the landlord does not compensate the tenant for capital investments, then the inseparable improvements are transferred by the tenant at the end of the lease term free of charge.

Income tax

By virtue of the Tax Code of the Russian Federation, the taxpayer has the right to reduce the total amount of VAT calculated in accordance with the Tax Code of the Russian Federation by tax deductions established by the Tax Code of the Russian Federation.
In accordance with the Tax Code of the Russian Federation, VAT amounts on goods (work, services) purchased for the implementation of operations recognized as subject to VAT are subject to deductions.
According to the Tax Code of the Russian Federation, transactions for the sale of goods (work, services) on the territory of the Russian Federation are recognized as subject to VAT taxation.
In this case, sales are recognized as the transfer on a paid basis (including exchange) of ownership of goods, the results of work performed by one person for another person, the provision of services for a fee by one person to another person, and in cases provided for by the Tax Code of the Russian Federation, the transfer of ownership of goods, the results of work performed by one person for another person, the provision of services by one person to another person - free of charge (Tax Code of the Russian Federation).
When transferring inseparable improvements from the tenant to the lessor, the ownership of them does not pass, since the inseparable improvements are already the property of the lessor.
According to the Ministry of Finance of Russia, if a tenant, in accordance with a lease agreement, carries out operations to transfer (on a paid or gratuitous basis) inseparable improvements to the lessor, then such operations are recognized as subject to VAT taxation. The argument in favor of this position is that the tenant transfers the improvements to the landlord not as an object, but as a result of the work performed to create it. And in accordance with the Tax Code of the Russian Federation, work for tax purposes is recognized as activity whose results have a material expression and can be realized (172 letters PBU 10/99).
Therefore, the following entries must be made in accounting:
Debit 26 (44) Credit 60
- reflects the cost of work on replacing windows, doors, filling floors, etc. in the office space;
Debit 19 Credit 60
- reflected VAT presented by the contractor;
- VAT is accepted for deduction;
Debit 60 Credit 51
- the cost of work on replacing windows, doors, filling floors, etc. was paid.
According to paragraph 2 of clause 5 of PBU 6/01, clause 46 of the Regulations on accounting and financial reporting in the Russian Federation, approved by the Ministry of Finance of the Russian Federation dated July 29, 1998 N 34n (hereinafter referred to as Regulation N 34n), capital investments in leased fixed assets are taken into account in composition of fixed assets (Ministry of Finance of Russia dated 09/17/2015 N 03-05-05-01/53344, dated 04/01/2014 N, dated 02/19/2014 N, dated 12/13/2012 N Inseparable improvements are taken into account at the original cost, consisting of actual expenses of the organization for their creation (clauses 7, 8 of PBU 6/01, clause 47 of Regulation No. 34n). This initial cost in accounting is repaid by calculating depreciation, which begins to accrue from the first day of the month following the month of adoption of improvements to accounting, and is carried out until their cost is fully repaid or written off from accounting (clauses 17, 21 PBU 6/01).
To establish the useful life of an asset, it is necessary to be guided by the criteria established by clause 20 of PBU 6/01. Let us note that to determine the useful life and the amount of depreciation in accounting, an organization may, but is not required to apply the Classification. Thus, in accounting for inseparable improvements, a useful life can be established equal to the lease term.
In accounting, operations to create improvements are reflected as follows:
Debit 08 Credit 60
- work on the construction of inseparable improvements is taken into account;
Debit 19 Credit 60
- VAT on the work claimed by the contractor has been taken into account;
Debit 68, subaccount "VAT calculations" Credit 19
- VAT is accepted for deduction;
Debit 08 Credit 10
- own material assets acquired for the work are written off;
Debit 01 Credit 08
- inseparable improvements are included in the OS;
Debit 60, Credit 51
- payment has been made to the contractor under the contract;
Debit 26 (44) Credit 02
- monthly depreciation for inseparable improvements.

Prepared answer:
Expert of the Legal Consulting Service GARANT
Vakhromova Natalya

Response quality control:
Reviewer of the Legal Consulting Service GARANT
Queen Helena

The material was prepared on the basis of individual written consultation provided as part of the Legal Consulting service.

The legislation does not have a clear definition of the local area next to private residential buildings, but usually every owner of such a building has to deal with this concept.

It is impossible to build a house on land that is not... A plot and a building are two different objects, each with its own cadastral number, but at the same time they are inextricably linked with each other.

The local area is considered an important area, since it is used for carrying out utilities, creating approaches and entrances, as well as for erecting various small buildings necessary for life.

Land may not only be the personal property of the home owners, but may also be registered in.

Legislative regulation

The use of the local area of ​​private buildings must be based on the same regulations that apply for.

TO these acts applies:

• LCD, which contains information about the definition of the local area, and also includes the basic principles on which it can be used;
• The Land Code describes the rules for determining the size of the plot;
• The Federal Law “On Land Management” allows you to determine how it is carried out correctly;
• The Tax Code provides information on how to correctly calculate the size, which is the property of the home owner;
• Federal Law No. 214 indicates how to correctly distribute rights in relation to common land.

Only with precise knowledge of all the rules regarding the use and delimitation of the local area can you be sure that there is no violation of the law.

Definition of concepts

The law does not have a precise concept of what constitutes a local area for a private residential building.

Therefore, this usually includes a small plot of land, which is located directly next to the house and is necessary for the life and maintenance of the building.

Plot Maybe:

• be in personal property;
• rent from the municipality;
• transferred for free use.

Fences can be erected on the boundaries of this site, after which the land can be used for any purpose of the home owners.

Owners and responsible persons

Ownership of land depends on how it is registered.

If it belongs by right of ownership to the owner of the house, then he can completely dispose of it at his discretion. If it is transferred by law, then the basic rules for its application are taken into account.

To the nuances determining territory ownership applies:

• the land that is located behind the fence is considered no man’s land, and therefore usually belongs to the municipality;
• only people who have the right to own and use it can use the area adjacent to the fence, for example, the owner of a private area is obliged to use it to leave the garage;
• it is assumed that several persons have the right to own land, for example, the owners of neighboring houses whose fences adjoin the same territory, so both of them can freely use this land.

Blocking off an area that must be used by several homeowners at once is a violation of the rights of citizens, so they can contact law enforcement agencies to remove illegal barriers.

Determine the size of the local area quite simply, since this uses a standard formula, which involves multiplying the area of ​​the house by the specific coefficient of the land, which is determined by SNiP.

Terms of use

There are no separate and precise data in the legislation on how a site located next to a private house should be used, so rules related to high-rise buildings are usually used.

That's why work is definitely being done:

• cleaning the area from various debris or snow;
• placement of waste containers;
• landscaping and landscaping;
• decorating the land and installing on it various objects and structures necessary for the life of the owners of private houses.

The owners of the building are allowed to independently determine what kind of work will be performed on this territory.

Cleaning

The owners of the house and site themselves must take care of cleaning the territory, so garbage is removed from it in a timely manner.

Snow removal depends on who owns the land, since if it is privately owned, then they are removed by the owners themselves.

If the earth belongs to the municipality, then a certain management company is usually appointed, which clears the land, for which the owners of the houses to which the territory adjoins pay certain funds.

If neighbors share the same property, they can set their own snow removal schedule.

landscaping

It is not mandatory, but it ensures an attractive appearance of the site.

Usually works include:

• uprooting trees if they interfere with travel or passage, and also pose a danger to human life;
• planting attractive flower beds or lawns;
• use of fertilizers for ornamental plants;
• creating a hedge.

Usually little attention is paid to this process, but it determines how attractive the territory will be.

Lighting

If the land belongs to the municipality, then you can require the installation of lighting fixtures by utility workers.

The owners of the local area must independently take care of the installation of these structures. This is especially true in spring and winter. Lighting may be decorative or functional.

If several home owners use one site, they can agree among themselves on the installation of lighting fixtures, for which all installation and maintenance costs are divided between them.

Asphalting

This process is also carried out only by the owners of residential buildings themselves. They make a decision regarding the creation of concrete or asphalt pavement. Money for this should be allocated from personal funds.

Typically, members of one housing cooperative decide at a meeting regarding the need to pave the area behind the fences. In this case, money is collected from each home owner and specialists are hired to create the coverage.

The area directly next to the houses, which is used only by the owners of the buildings, is being paved at the expense of their personal savings.

Improvement

It includes various works related to decorating the territory, cleaning it and installing various functional elements that greatly simplify the process of using it.

Emergency living plantings must be removed. It is also not allowed to create obstacles to the use of the common area by other home owners.

Rental

It is allowed to lease this land, for which you must first Psubmit an application to the administration. When transferring a plot of land for lease, a certain fee is established for the use of the land.

If the land is registered as a property, then you do not need to obtain permission from the administration to rent it out.

The administration may refuse the opportunity to rent out land, since it may contain important communications or there is a narrow road, so it is not allowed to block the territory.

Responsibility for violating the rules

The territory can be leased or ownership rights can be registered. If the requirements for the use or maintenance of the territory are not met, the object may be confiscated by local authorities. Therefore, it is not allowed to create obstacles for neighbors or to have a lot of garbage on the site.

If administration employees discover misuse of land or a lot of garbage accumulates on it, a fine may be issued.

Thus, the local area next to private houses may belong to the citizens themselves or the municipality. The possibility of its use is determined by the need for it, as well as the available registration documents. It is important to use the land for its intended purpose, taking into account many rules, and also take care of its improvement.

Examples of arranging the local area of ​​residential buildings are presented in the following video:

M.A. Kokurina, lawyer

“We improve” taxes after landscaping

How to justify and take into account the costs of paving, landscaping, lighting and pay taxes

The topic of the article was suggested by S.Yu. Kazankova, Chief accountant of Yarmarka LLC (Moscow region).

Demand, as we know, creates supply. Clients want to drive along a smooth road straight to the doors of a cozy shopping center, employees want to leave their cars in the parking lot next to the office, suppliers want to unload products from a convenient area near the warehouse.

Therefore, owners and tenants of retail, office, warehouse and industrial premises are trying in every possible way to equip not only the internal, but also the external territory, paving paths, equipping parking lots, laying out lawns and flower beds.

Landscaping- this is a set of measures for engineering preparation and safety, landscaping, covering, lighting, placement of small architectural forms and monumental art objects clause 1.5 of the Methodological Recommendations, approved. By Order of the Ministry of Regional Development dated December 27, 2011 No. 613 (hereinafter referred to as the Methodological Recommendations).

Tax authorities believe that external improvement objects are not depreciated for profit tax purposes and subp. 4 p. 2 tbsp. 256 Tax Code of the Russian Federation; Letter from the Federal Tax Service for Moscow dated December 21, 2011 No. 16-15/123392@. And because of this, accountants are racking their brains about how to defend the right to take into account the costs of such improvements, whether it is possible to deduct VAT on such expenses, and whether to take into account the cost of “improved” fixed assets in the property tax base.

How should one act to minimize the likelihood of disputes with tax authorities on such sensitive issues?

We justify “improvement” expenses

Refusing to recognize your “improvement” expenses as expenses, the tax authorities will not agree with the deduction of VAT on work and goods purchased to improve the territories. Most often, the tax authorities’ arguments are as follows:

• expenses for improvement are not aimed at generating income and are not related to the commercial activities of the organization Letters of the Ministry of Finance dated July 17, 2012 No. 03-03-06/2/81, dated October 18, 2011 No. 03-07-11/278;
• deduction of VAT on goods, works and services related to the improvement of territories is illegal, since they are not used in transactions subject to VAT Letters of the Ministry of Finance dated November 9, 2011 No. 03-03-06/1/736 (clause 2), dated October 18, 2011 No. 03-07-11/278, dated March 15, 2011 No. 03-03-06/1/136.

The court decisions mentioned in the article can be found: section “Judicial Practice” of the ConsultantPlus system

Your task is to convince the inspectors that you did not just spend money “on creating a comfortable, practical and aesthetically equipped space on the organization’s territory” Letter of the Ministry of Finance dated July 17, 2012 No. 03-03-06/2/81, but they did it for fairly good reasons. And here are the documents that can help you with this.

We are looking for justification for expenses in regulations

During the construction or reconstruction of buildings and structures, and then during their operation, you are obliged to improve the territory and restore the natural environment around them clause 3 art. 37, paragraph 2, art. 38, paragraph 2 of Art. 39 of the Law of January 10, 2002 No. 7-FZ; Resolution of the Federal Antimonopoly Service ZSO dated 01.02.2012 No. A56-67139/2010.

WE WARN THE MANAGER

For evading work on landscaping and non-compliance related to them environmental requirements the company may be punished: fined or suspended Art. 6.3 Code of Administrative Offenses of the Russian Federation; Art. 56 of the Law of January 10, 2002 No. 7-FZ; Resolution of the Kamchatka Regional Court dated April 30, 2013 No. 4-A -92.

You can find out what specific measures need to be taken for this from the norms at various levels: if you don’t find anything suitable for you in federal legislation, look at regional and local regulations. For example, local governments may adopt rules for the operation of public amenities. In particular, on landscaping, lighting of territories, maintenance of green spaces and roads. pp. 8.1.1, 8.2.2, 1.5 Methodological recommendations.

Sanitary rules and regulations

Depending on your field of activity, you can look for “your” norm obliging you to carry out landscaping. In particular:

• <или>pave the territory, plant lawn grass when organizing car services and gas stations SanPiN 2.2.1/2.1.1.1200-03; pp. 2.12.25, 2.12.26 Methodological recommendations;
• <или>develop the adjacent territory and equip a site on the side of the roadway near trade and catering establishments for temporary parking of vehicles, which cannot be placed in the courtyards of residential buildings in Resolution of the Federal Antimonopoly Service dated July 15, 2009 No. A55-17802/2008; clause 2.8 SP 2.3.6.1066-01.

Fire safety requirements

According to them, to provide evacuation routes and access for special equipment, an area around the building must be cleared of debris. Therefore, asphalt paving is necessary to comply with fire safety regulations. Art. 80 of the Law of July 22, 2008 No. 123-FZ;.

"Repair" rules

If you are the owner of a building and the territory underneath it, you are obliged to bear the burden of maintaining a parking lot, roads, pedestrian areas, asphalt areas, checkpoints, and an external lighting network. Resolution 10 AAS dated 02/08/2011 No. A41-10802/10.

Such landscaping work is related to the use of your property and relates to scheduled maintenance, also required by law. MDS 13-14.2000; Resolution of the Federal Antimonopoly Service of the Moscow Region dated December 5, 2012 No. A40-47856/10-107-250.

Town planning rules

To comply with them, before putting your building into operation, technical specifications or the conclusion of “architectural” bodies (for example, Moskomarkhitektura) may require, in particular:

• <или>organize a parking lot around the building for visitors and workers to exclude parking on the roadway of the adjacent street, pave the entrances, parking lots, areas with side stones, and illuminate the area in the evening and at night Resolution of the Federal Antimonopoly Service of the Moscow Region dated May 25, 2011 No. A41-10802/10;
• <или>carry out compensatory landscaping - landscaping Resolution of the Federal Antimonopoly Service of the Moscow Region dated January 26, 2009 No. KA-A40/13294-08.

Without complying with such instructions, the owner of the building may be denied acceptance of the facility and permission to put it into operation. And without this, you will not be able to register ownership and use your building in business activities, which means you will not make a profit.

What documents can you prepare yourself to justify expenses?

If among the regulations you have not found anything suitable to justify your expenses for improvement, make one or several such documents in your company.

Order from the head of the company

The purpose of issuing such a document is to justify the connection between expenses for improvement and the commercial activities of your company. After all, the more attractive and safe the territory, the easier it is to rent it out for a higher rent, the more customers will come to shop at the shopping center located there, or the higher the company’s rating will be in the eyes of potential counterparties.

The justification for spending on improvement can be formulated in the order as follows:

• <или> "according to production needs" in particular, for the construction of parking lots, parking lots, and road expansion. For example, when you need:

• for the cargo carrier - parking for cargo vehicles;
• for the owner of the shopping center - parking for guests;
• for a production or warehouse company - a wider, repaired road for the passage of long vehicles Resolution of the Federal Antimonopoly Service UO dated 06/01/2010 No. Ф09-3938/10-С3;
• any company, regardless of its field of activity - parking for company cars Resolution of the FAS UO dated November 25, 2010 No. Ф09-8966/10-С3 or an equipped road as the only access route Resolution of the Federal Antimonopoly Service of the Moscow Region dated October 12, 2010 No. KA-A40/12233-10;

• <или> “in order to increase the attractiveness of the territory.” So you can try to defend expenses, in particular:

• on security (installation of checkpoints, installation of external surveillance networks);
• for aesthetic improvement (planting trees and shrubs, laying out lawns, installing small sculptural forms);
• for convenience (paved roads, playgrounds, arrangement of pedestrian paths, playgrounds, installation of benches).

Regulations on labor protection

In this document it can be stated that the improvement of the territory is determined by the requirements of labor legislation as measures for labor protection Art. 22 Labor Code of the Russian Federation. In particular, in order to ensure the safety of workers and the safety of their property, it may be necessary:

• <или>equipment for parking at the office for employee cars;
• <или>restoration of the area near the administrative office building (for example, arrangement of sidewalks, transition to clause 27 of the Model List, approved. By Order of the Ministry of Health and Social Development dated March 1, 2012 No. 181n; Resolution 9 of the AAS dated March 11, 2013 No. A40-32264/12-90-153);
• <или>planting trees and shrubs around an office building or industrial premises to create shade in the area and regulate the temperature in the premises x clause 6.3 SanPiN 2.2.1/2.1.1.1076-01.

Special provisions in the lease agreement

The lease agreement may contain an agreement on the improvement of the territory in order to most effectively extract profit for both the lessor and the lessee. In particular, The landlord may not spend money on landscaping himself, but rather provide for its necessity:

• <или> as a condition of long-term lease. That is, for example, if you rent a building for a long term, you are obliged to equip and improve the area around it.

3.2. The tenant undertakes:

3.2.3. Carry out work to improve the land plot in accordance with the estimate, which lists the volume and types of work (Appendix No. ___), and the schedule for their implementation (Appendix No. ___).

4.1. The lease period is set from March 05, 2014 to March 04, 2029, subject to the tenant’s landscaping of the territory in accordance with the estimate and work schedule, which is an integral part of this Agreement.

4.1.1. Upon expiration of the Agreement and fulfillment of all its conditions, the Tenant has a preferential right to renew the Agreement.

• <или>as the obligation of the tenant to bear the costs of improving, restoring or developing the leased areas as necessary. That is, you rent a building, and the amount of improvement is at your discretion and when necessary (in particular, in order to restore the atmosphere of the environment Resolution of the Federal Antimonopoly Service of the Northern Territory of April 27, 2009 No. A56-23561/2008).

3.2. The tenant undertakes:

3.2.3. Carry out landscaping work on the leased land plot around the leased building to the extent necessary to maintain this territory in a condition no worse than the one in which it was transferred to the tenant.

If initially your lease agreement does not contain a provision regarding the improvement of adjacent territories, you can draw up an additional agreement with the landlord containing such an obligation for the tenant to Resolution of the Federal Antimonopoly Service of the Moscow Region dated August 26, 2011 No. KA-A40/9285-11.

We document expenses

Your reasonable expenses must also be documented. For example, to prove expenses for asphalting paths, you must have:

• act of acceptance of completed work;
• a properly executed invoice issued by the contractor;
• acts of acceptance and transfer of improvement objects for each accepted inventory object.

We qualify expenses in tax accounting

If your improvement creates property with a useful life of less than 12 months or an initial cost of 40,000 rubles. or less, then the costs of improvement must be taken into account as part of other expenses associated with production and sales subp. 7, 49 p. 1 art. 264 Tax Code of the Russian Federation; Letter of the Ministry of Finance dated November 9, 2011 No. 03-03-06/1/736.

If, as a result of “improvement” work, property is created with a useful life of more than 12 months or an initial cost of more than 40,000 rubles, then it should be considered as depreciable (for example, production sites with coatings belong to the 5th depreciation group e) Art. 256 Tax Code of the Russian Federation; Letter of the Ministry of Finance dated December 14, 2011 No. 03-03-06/1/823; Government Decree No. 1 of 01.01.2002. Then the created objects can be recognized as fixed assets and their cost is written off as expenses through depreciation. Create inventory cards for them to account for fixed assets. By the way, you can write down as an inventory object:

• <или>a separate external improvement object (for example, each asphalt path);
• <или>a complex of objects located on your territory (for example, all pedestrian paths or perennial plantings around your business center).

When you improve not your own, but leased land plots, then improvement objects are considered inseparable improvements to the leased fixed assets. Therefore, such objects can only be depreciated clause 1 art. 256 Tax Code of the Russian Federation:

• during the term of the lease agreement;
• provided that the improvement costs are approved by the landlord. If you improved the land without the consent of the lessor, you can try to take into account your costs in other costs associated with production and sales. But a dispute with the tax authorities is guaranteed Resolution of the Federal Antimonopoly Service of Ukraine dated July 16, 2012 No. F09-5675/12;
• if the lessor does not compensate for such expenses.

In the case of improving areas that do not belong to you either by lease or by right of ownership, you can also try to account for “improvement” expenses as other expenses associated with production and sales. But keep in mind that it is even more difficult to justify them and even the courts may be against taking into account expenses for improving the territories of others Resolution 2 of the AAS dated August 12, 2011 No. A17-272/2009.

Perhaps you do not improve the area under the finished building, but build the object yourself and arrange the space around it. In this case, the costs of improvement can be included in the cost of the building or structure you erected.

We reflect improvement objects in accounting

If you admitted improvement object with the main means, That:

• accept it for accounting at its original cost. It is defined as the sum of the costs of creating it and bringing it to a state suitable for use, excluding VAT pp. 7, 8 PBU 6/01;
• transfer the costs of its creation through depreciation to expenses for ordinary activities.

Make the following wiring.

Contents of operation	Dt	CT
The cost of work on the creation of external improvement objects is reflected
VAT claimed by the contractor is reflected		60 “Settlements with suppliers and contractors”
VAT claimed by the contractor is accepted for deduction	68 “Calculations for VAT”	19 “Value added tax on acquired assets”
External improvement objects are taken into account as part of the operating system	01 "Fixed assets"	08 “Investments in non-current assets”
Depreciation accrued on external improvement objects	20 “Main production” / 26 “General business expenses” / 44 “Sales expenses”	02 “Depreciation of fixed assets”

Expenses for the creation of external improvement objects that are not fixed assets, and the costs of maintaining any external improvement facilities in working order should be reflected as follows.

The object of corporate property tax is: clause 1, sub. 8 clause 4 art. 374 Tax Code of the Russian Federation:

• real estate recorded on the balance sheet as fixed assets. Suppose you have erected a permanent structure at the entrance to the territory of the boarding house, in which a security and registration point for arriving guests will be located;
• movable property recorded in accounting as part of the operating system as of January 1, 2013. Let's say you installed lights on the territory of a shopping center. If you registered such objects as fixed assets after January 1, 2013. subp. 8 clause 4 art. 374 Tax Code of the Russian Federation, then you do not have to pay property tax, submit a declaration and calculations on it.

As for inseparable improvements to the leased property (for example, landscaping, paving, installation of permanent fences around the territory), then such assets will have to pay property tax if this is an investment in real estate Letter of the Ministry of Finance dated March 14, 2013 No. 03-05-05-01/7760.

The Ministry of Construction of the Russian Federation provided clarification on who should bear the costs of organizing lighting in the courtyards of residential buildings. Earlier in Yekaterinburg, an inspection of lanterns on lighting poles was carried out. Those located in the courtyards of apartment buildings were cut off from the power supply, plunging the sites into darkness.

The Yekaterinburg administration explained then that the yard lighting poles are not on the balance sheet of Gorsvet, so they will no longer supply this electricity at municipal expense. “All management companies were warned that this is an inappropriate use of funds, so the electricity will be turned off. The electricity used to illuminate the yard will be paid for by the owners. This is included in general household consumption,” acting acting director said on radio “Gorod.fm”. Head of the Housing and Communal Services Department of the Yekaterinburg Administration Alexander Bragin.

Meanwhile, Mikhail Men’s department is confident that outdoor lighting networks are not part of the common property in an apartment building, so homeowners should not pay for it. The ministry explained this in a response to one of the deputies of the State Duma of the Russian Federation. “Neither the Housing Code nor the rules for maintaining common property contain the obligation of owners of premises in apartment buildings to bear the costs of street (yard) lighting. In accordance with the law on the general principles of organizing local self-government, the organization of improvement of the territory of the urban district (in particular, street lighting) is classified as issues of local importance. Financial obligations arising in connection with the resolution of issues of local importance are fulfilled at the expense of local budgets. The Ministry of Construction of the Russian Federation believes that the organization and repair of street (yard) lighting falls within the competence of local governments,” says the letter signed by Deputy Minister of Construction and Housing and Communal Services of the Russian Federation Andrei Chibis.

Our company intends to rent a plot of land. There will be parking for official vehicles on it. What costs can be taken into account as part of the current expenses of the tenant, i.e. our organization, if it is to be completely landscaped? It is necessary: ​​to make an asphalt surface, a fence, video surveillance (since the cars are expensive), a canopy and so on

Asphalting a land plot can be classified as an inseparable improvement, the costs of which are amortized in tax accounting.

When classifying asphalting as inseparable improvements (if the lessor does not compensate for their cost), the lessee must record them as fixed assets during the term of the lease agreement.

The lessee can accrue depreciation on inseparable improvements only during the period of validity of the land plot lease agreement during which these improvements were made.

At the end of the lease agreement, depreciation on such capital investments must cease. Even if their useful life has not yet expired.

The under-depreciated part of the cost of capital investments cannot be taken into account when calculating income tax.

2. Installation of a video surveillance system, this is a separable improvement to the leased property.

If the lessor has given his consent to such an improvement, but does not compensate for the costs, the lessee has the right to include the amount spent on the improvement in the operating system or inventory (based on the cost criterion) and take it into account in accounting and tax accounting at the time of commissioning.

3. As for the fence and canopy, such improvements can be either separable or inseparable.

If the fence or shed is easy to dismantle, then this will be a separable improvement, then when writing off expenses, follow Recommendation No. 6.

If the fence and shed are a brick extension, then this improvement will be classified as inseparable. Write off such costs according to Recommendation No. 7.

The rationale for this position is given below in the materials of the Glavbukh System.

1.Situation:Is it possible to calculate depreciation in tax accounting on objects such as asphalt (concrete, sidewalk) pavements, which were created without attracting budgetary (targeted) funding?

Yes, it is possible if the arrangement of such facilities is required by law.

As a general rule, regardless of the sources of financing, asphalt (concrete, sidewalk) coatings are classified as external improvement objects, and, therefore, depreciation is not charged on them (). This point of view is reflected in letters of the Ministry of Finance of Russia* dated January 30, 2008 No. 03-03-06/1/63, dated October 30, 2007 No. 03-03-06/1/745, dated May 30, 2006 No. 03-03-04/1/487, dated April 25, 2005 No. 03-03-01-04/1/201 and dated October 13, 2004 No. 03-03-01-04/1/73.

At the same time, for certain sectors of the economy, the arrangement of production sites with asphalt and other types of coatings near production facilities is mandatory by virtue of legislation, as well as regulatory technical documents in the field of industrial safety. In such cases, the organization can charge depreciation on them. This conclusion was made in the letter of the Ministry of Finance of Russia dated June 19, 2008 No. 03-03-06/1/362.*

The chief accountant advises: there are arguments that allow depreciation to be calculated on asphalt (concrete, sidewalk) pavements created without attracting budgetary funds, regardless of whether their arrangement is stipulated by legal norms or not. They are as follows.*

Asphalt (concrete, sidewalk) coatings are classified as road facilities. A literal reading of paragraph 2 of Article 256 of the Tax Code of the Russian Federation allows us to conclude that if budgetary or other targeted funding was not used during the construction of road facilities, then depreciation can be calculated on such facilities. The main thing is that the development of such facilities is connected with activities aimed at generating income (clause 1 of Article 252 of the Tax Code of the Russian Federation). In arbitration practice there are examples of court decisions that confirm the legality of this approach (see, for example, decisions of the Federal Antimonopoly Service of the North-Western District dated June 1, 2009 No. A56-33207/2008, dated January 14, 2008 No. A56-4910/2007 , dated July 18, 2005 No. A56-11749/04 and dated October 25, 2004 No. A56-32626/03, Volga-Vyatka District dated October 22, 2008 No. A28-1630/2008-43/29, Moscow District dated July 23, 2008 No. KA-A40/6654-08, Ural District dated June 26, 2008 No. F09-4500/08-S3, Volga District dated June 13, 2012 No. A55-19091/2011).

In addition, an organization can include the following objects (worth more than 40,000 rubles) as part of depreciable property:

• as a structure;
• as capital investments in leased fixed assets.

Hard decorative coatings can be taken into account as structures for the following reasons. Firstly, they improve access to the organization, help attract additional customers, and therefore have a positive effect on increasing sales. Secondly, the presence of a hard surface allows you to reduce loading and unloading time, which also increases business efficiency. It follows from this that the hard surface is used in activities related to generating income and corresponds to the definition of depreciable property specified in paragraph 1 of Article 256 of the Tax Code of the Russian Federation. The basis for calculating depreciation in this case is paragraph 1 of paragraph 1 of Article 256 of the Tax Code of the Russian Federation.

If the hard surface is built on leased land, the costs of its construction can be classified as capital investments in leased fixed assets (see, for example, letter of the Federal Tax Service of Russia for Moscow dated March 16, 2006 No. 18-11/1/20791). At the same time, the land lease agreement (additional agreement to it) must reflect the consent of the lessor (tenant's right) to produce inseparable improvements in the form of asphalt (concrete, sidewalk) covering (paragraph 1, clause 1, article 256 of the Tax Code of the Russian Federation). In addition, such an agreement (additional agreement) must provide that the lessor does not reimburse the lessee for the cost of capital investments (paragraph 4, paragraph 1, article 258 of the Tax Code of the Russian Federation). The basis for calculating depreciation in this case is paragraph 1 of Article 256 of the Tax Code of the Russian Federation (see, for example, letters from the Federal Tax Service of Russia in Moscow dated December 14, 2007 No. 20-12/119684, dated March 17, 2006 No. 18- 11/20791). For the application of bonus depreciation when depreciating inseparable improvements to leased property, see.

It is possible that during the audit the tax inspectorate will not agree with the inclusion of expenses for the installation (laying) of hard surfaces in the calculation of taxable profit. In this case, the organization will have to defend its position in court.

An example of reflection in accounting and taxation of an asphalt parking lot equipped on a leased territory. The tenant organization applies the general taxation system*

In January, LLC Trading Company Hermes (tenant) entered into a lease agreement with CJSC Alpha (lessor) for the land plot on which the shopping complex is located. The lease agreement is valid for 25 years.

The terms of the agreement provide:

• The tenant has the right to carry out any work on the leased area only with the consent of the landlord;
• The landlord does not reimburse the tenant's investment in the rental property.

In April, Hermes decided to equip an asphalt parking lot on the leased site. To do this, he concluded an additional agreement with Alpha to the contract, which reflected the lessor’s consent to arrange the parking lot. The asphalt work on the parking lot was completed by a contractor in May. The cost of the work amounted to 2,360,000 rubles. (including VAT – 360,000 rubles).

The Hermes accountant was guided by the explanations of the Federal Tax Service of Russia for Moscow and included an equipped parking lot as part of fixed assets.

Expenses for ensuring the safety of the organization's property can be considered economically justified (clause 1 of Article 252 of the Tax Code of the Russian Federation). Although they do not directly generate income, they provide the opportunity to receive it and minimize possible losses (damage and loss of the organization’s property). Therefore, take into account the depreciation accrued on the fence enclosing the territory of the organization as expenses that reduce income tax.*

Elena Popova, State Advisor to the Tax Service of the Russian Federation, 1st rank

The tenant has the right to improve the property he leases. Improvements may be separable or inseparable.*

For information on how a tenant can reflect separable improvements to leased property in accounting and for tax purposes, see How a tenant can reflect expenses for separable improvements to leased property in accounting and for tax purposes.

What refers to inseparable improvements?

Inseparable improvements include, for example, the installation of a fire alarm system, a stationary heating and ventilation system (split system), etc.*

The chief accountant advises: you can distinguish separable improvements from inseparable ones by the following criterion: whether damage will be caused to the leased property if you try to separate the improvement made from it.

If an improvement cannot be separated without harm to the property, then such an improvement is inseparable (for example, dismantling a stationary heating system can harm the capital floors of the building).*

point 2

However, for tax purposes, tax inspectors are unlikely to follow it when auditing. In each specific case, the situation will be resolved depending on the type of work performed and the possible harm that dismantling the improvements may cause. For example, depending on what kind of porch the organization added to the rented building (an easily dismantled plastic canopy or a permanent brick extension), this improvement may be classified as separable or inseparable.

Situation: does reconstruction (modernization, additional equipment, addition) apply to inseparable improvements of leased property for accounting and tax purposes*

Yes, it does.*

According to the norms of civil legislation, improvements are new additional properties of the property, without which the leased property existed and could be used for its intended purpose (Article, Civil Code of the Russian Federation). Reconstruction (modernization, retrofitting, completion) is also classified as work as a result of which the property acquires new or additional properties (increasing production capacity, throughput, etc.) (letter of the USSR Ministry of Finance dated May 29, 1984 No. 80). Thus, reconstruction work (modernization, additional equipment, completion) of the leased property can be considered as its improvement. If the result of such capital investments is inseparable from the leased object, this is an inseparable improvement ().

This conclusion is valid for both accounting and taxation purposes* (clause 2 of article 1 of Law dated December 6, 2011 No. 402-FZ, clause 2 of article 257 of the Tax Code of the Russian Federation, letter of the Ministry of Finance of Russia dated November 18, 2009 no. 03-03-06/1/762, dated November 23, 2006 No. 03-03-04/1/794).

Moment of transfer of ownership to the lessor

As a general rule, inseparable improvements are the property of the lessor (unless otherwise provided by the agreement) and are transferred to his balance sheet at the end of the lease term. However, the parties to the transaction may provide for a different procedure, for example, the transfer of inseparable improvements is possible immediately after the completion of these works.

This procedure follows from the provisions of the Civil Code of the Russian Federation.

Reimbursement of expenses by the lessor

If the tenant makes inseparable improvements at his own expense and with the consent of the landlord, the latter must compensate him for expenses (unless otherwise provided in the contract). The parties can provide for any form of compensation for expenses: compensation in money or through rent.

Accounting

The accounting procedure for inseparable improvements transferred to the lessor’s balance sheet depends on two factors:*

• method of producing improvements (construction by economic or contract method, purchase);
• conditions for improvements (whether they are compensated by the landlord or not).

If the organization makes inseparable improvements to the leased property on its own, reflect this in accounting by posting:*

Debit 08 Credit 10 (23, 25, 26, 60, 76, 70, 07...)
– reflects the costs associated with the production of inseparable improvements to the leased property.

If an organization engages third-party contractors to produce inseparable improvements, make the following entry in accounting:*

Debit 08 (07) Credit 60 (76, 10)
– reflects the cost of contract work for the production of improvements.

Document the receipt of an inseparable improvement on the balance sheet by an act drawn up in a form approved by the head of the organization, or in form No. OS-1 (or form No. OS-1a, form No. OS-1b, form No. OS-14). In this case, the primary documents must contain all the mandatory details provided for in Part 2 of Article 9 of the Law of December 6, 2011 No. 402-FZ. This procedure is provided for in Part 4 of Article 9 of the Law of December 6, 2011 No. 402-FZ.

For more information about accounting and paperwork when creating (purchasing) fixed assets, see:

• How to formalize and reflect in accounting and taxation the construction (manufacturing) of fixed assets using economic methods;
• How to formalize and reflect in accounting and taxation the construction (manufacturing) of fixed assets by contract;
• How to register and reflect in accounting and taxation the receipt of fixed assets that require installation.

Accounting: the landlord does not reimburse expenses for improvements

If the lessor does not reimburse the cost of permanent improvements, the lessee must account for them as property, plant and equipment during the term of the lease. If such expenses do not exceed 40,000 rubles, the organization can take them into account as part of inventories (MPI).* This is stated in paragraph 5 of PBU 6/01.

Repay the cost of inseparable improvements in the form of separate fixed assets by calculating depreciation (clause 17 of PBU 6/01). For accounting purposes, limit the useful life of an inseparable improvement to the duration of the lease agreement (paragraph 5, clause 20 of PBU 6/01).

Write off the cost of inseparable improvements in the form of inventories as expenses at the time of transfer to operation (paragraph 4, paragraph 5 of PBU 6/01, paragraph 93 of the Methodological Instructions, approved by order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n).

When reflecting inseparable and uncompensated improvements in the composition of inventories in accounting, temporary differences may arise (clause 8 of PBU 18/02). This is due to the fact that in tax accounting such capital investments are classified as depreciable property, regardless of their value (paragraph 4, paragraph 5 of PBU 6/01).

An example of reflecting inseparable improvements in a tenant's accounting. The lessor does not compensate for inseparable improvements*

In January 2013, Alfa CJSC received a building for rent. The resulting building is used in the production activities of the organization.

In March 2013, the organization installed a ventilation system in the premises. This system cannot be dismantled without damaging the premises, so it should be considered an integral improvement. The amount of installation costs amounted to 220,000 rubles.

The lease agreement did not provide for inseparable improvements; the lessor does not compensate for their cost. The lease agreement expires in January 2015.

The permanent improvement in tenant accounting was recorded as an asset and placed in service in March 2013. Its useful life is set from April 2013 to January 2015 (22 months). The organization calculates depreciation using the straight-line method. The monthly depreciation amount is RUB 10,000.

The following entries were made in the organization's accounting records.

In March 2013:

Debit 08 Credit 10 (02, 70, 69, 76…)
– 220,000 rub. – the costs of producing inseparable improvements using the tenant’s own resources are reflected;

Debit 01 Credit 08
– 220,000 rub. – inseparable improvements to fixed assets are taken into account;

Debit 19 Credit 68 subaccount “VAT calculations”
– 39,600 rub. (RUB 220,000 ? 18%) – VAT is charged on the cost of inseparable improvements;

Debit 68 subaccount “VAT calculations” Credit 19
– 39,600 rub. – VAT accrued on the cost of inseparable improvements is accepted for deduction.

Monthly from April 2013 to January 2015:

Debit 20 Credit 02
– 10,000 rub. – depreciation is accrued on the inseparable improvement of the leased property.

If the lessor does not compensate the cost of improvements to the lessee, such transfer is recognized as a gratuitous sale of property. In this case, on the date of transfer of the improvement object to the lessor’s balance sheet, make the following entry in the accounting:

Debit 91-2 Credit 01
– the residual value of the gratuitously transferred property is written off (based on a document evidencing the transfer of the object, for example a deed);

BASIC: income tax

When calculating income tax, accounting for inseparable improvements to leased property depends on the conditions for the improvements and compensation for their cost. In this case, there are three options:*

• the improvements were carried out with the consent of the lessor, and he reimburses their cost;
• the improvements were carried out with the consent of the lessor, but he does not reimburse their cost;
• improvements were carried out without the consent of the landlord.

If inseparable improvements were carried out with the consent of the lessor and he compensates for their cost, then do not charge depreciation on the capital investments made (paragraph 5, clause 1, article 258 of the Tax Code of the Russian Federation).

If inseparable improvements were carried out with the consent of the lessor, but he does not compensate for their cost, then the tenant receives the right to depreciate the capital investments made (paragraph 6, paragraph 1, article 258, paragraph 1, article 256 of the Tax Code of the Russian Federation). Such capital investments are recognized as depreciable property regardless of their cost* (). This rule also applies in situations where the lessor is a citizen. An exception to the above procedure for calculating depreciation is inseparable improvements to leased non-production facilities (clause 1 of article 252, clause 1 of article 256 of the Tax Code of the Russian Federation).

If inseparable improvements were carried out with the consent of the lessor, but he compensates only part of their cost, then the remaining part of the costs (the cost not reimbursed by the lessor) reduces taxable profit by calculating depreciation (paragraph and clause 1 of Article 258 of the Tax Code of the Russian Federation, letter of the Ministry of Finance of Russia dated 30 July 2010 No. 03-03-06/2/134).

Start calculating depreciation on the 1st day of the month following the month the asset was put into operation. Determine the depreciation rate based on the useful life in accordance with the Classification approved by Decree of the Government of the Russian Federation of January 1, 2002 No. 1.

Stop accruing depreciation on permanent improvements on the 1st day of the month following the month in which the lease agreement terminated.

If the lease agreement is extended, the lessee will continue to depreciate the inseparable improvements.

This follows from the provisions of paragraphs and Article 259.1, paragraphs and Article 259.2 of the Tax Code of the Russian Federation.

The stated procedure is fully applied when using the accrual method (). When applying the cash method, a necessary condition for accounting for depreciation in expenses is the payment by the tenant of capital investments in the form of inseparable improvements (subclause 2, clause 3, article 273 of the Tax Code of the Russian Federation).

The tenant has no right to apply the depreciation bonus provided for in paragraph 9 of Article 258 of the Tax Code of the Russian Federation to inseparable improvements. After all, inseparable improvements are an integral part of the leased property, which does not remain on the balance sheet of the tenant. In addition, paragraph 1 of Article 258 of the Tax Code of the Russian Federation establishes a special procedure for calculating depreciation for inseparable improvements.

Such clarifications are contained in letters of the Ministry of Finance of Russia dated October 12, 2011 No. 03-03-06/1/663 and dated February 9, 2009 No. 03-03-06/2/18.

For more information on the procedure for calculating depreciation on leased fixed assets, see * How to calculate depreciation on leased fixed assets in tax accounting.

Due to differences in the procedure for determining the useful life of inseparable improvements in accounting and tax accounting, permanent or temporary differences may arise in accounting (clause , PBU 18/02).

An example of calculating depreciation of capital investments in inseparable improvements to leased property in the tax accounting of the tenant. Capital investments are not reimbursed and are made with the consent of the lessor*

Alfa CJSC rented a production building in January 2013. In the same month, the organization, with the consent of the landlord, equipped the building with a new heating system. This system cannot be removed without damaging the building and should therefore be considered a permanent improvement. Alpha's costs amounted to 250,000 rubles. (without VAT).

Inseparable improvements were made with the consent of the lessor, but he does not compensate for this amount. The lease period for the building is 12 months – from January to December 2013 inclusive.

The accountant determined that the organization can depreciate the heating system from February to December 2013 inclusive (clause 1 of Article 258 of the Tax Code of the Russian Federation). The useful life of the system is 420 months (tenth depreciation group). The organization calculates depreciation using the straight-line method.

The monthly depreciation rate was:
1: 420 months ? 100% = 0.2381%.

Monthly depreciation was:
250,000 rub. ? 0.2381% = 595 rub.

The amount of depreciation that Alpha can write off for the entire rental period is 6,545 rubles. (595 rub. ? 11 months).

The lease agreement was not renewed for next year. The difference between the amount spent on the heating system and the accrued depreciation is RUB 243,455. (RUB 250,000 – RUB 6,545) – “Alpha” will not be able to take it into account when calculating income tax.

Oleg Khoroshy, State Advisor to the Tax Service of the Russian Federation, III rank

What applies to separable improvements?

There is no definition of separable improvements in the legislation. Separable improvements include, for example, the installation of video cameras (video surveillance systems) in the office, the construction of extensions to the building that can be easily dismantled from it, etc.*

The chief accountant advises: you can distinguish separable improvements from inseparable ones by the following criterion: whether damage will be caused to the leased property if you try to separate the improvement made from it.

If the improvement can be separated without harm to the property, then such an improvement is separable (for example, dismantling a video surveillance system will not harm the leased building).*

This conclusion allows us to draw paragraph 2 of Article 623 of the Civil Code of the Russian Federation. This legal norm does not explain what is meant by causing damage to leased property. Therefore, the exact criterion for classifying improvements as one type or another can be specified in the lease agreement or a specific list of works can be provided indicating what type of improvements they relate to. Such a list will help the parties to the transaction understand the definition of the work performed (for example, when resolving disputes about payment for the cost of improvements).