Graduated depreciation

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The season amortization (Season depreciation) is a method to the scheduled time-dependent scale-like deduction for depreciation .

As a special form of declining balance depreciation , it differs from linear depreciation . It pretends to write off a certain number of years with the same percentage. This is followed by one or more periods with lower percentages, which gradually decrease the depreciation amounts.

Situation in Germany

The scaled depreciation is permitted under tax law for buildings in Germany. It depends on the time of purchase or manufacture and the type of building (commercial or residential building). There are different scales that are regulated in Section 7 (5) EStG.

Examples

  • Farm buildings purchased or constructed before January 1, 1994:
    • Years 1 to 4: 10% annually
    • Years 5 to 7: 5% annually
    • Years 8 to 25: 2.5% annually
  • Residential buildings purchased or constructed after February 28, 1989 and before January 1, 1996:
    • Years 1 to 4: 7% annually
    • Years 5 to 10: 5% annually
    • Years 11 to 16: 2% annually
    • Years 17 to 40: 1.25% annually

Individual evidence

  1. ↑ Asset accounting> Master data> Graduated depreciation. Retrieved August 23, 2019 .
  2. ↑ Brauer, Kerry-U .: Fundamentals of the real estate economy: law-taxes-marketing-financing-inventory management-project development . Springer, 2013, ISBN 978-3-663-07658-2 , pp. 292 ff . ( google.de ).
  3. ↑ §7 Income Tax Act. In: dejure.org. Retrieved August 23, 2019 .