Visma Skatt & Bokslut Pro
Depreciation deduction - (sole proprietorship)
In this section, we explain how to use the calculation appendix Depreciation deduction - buildings/land improvements for
The calculation appendix provides you with a summary of depreciation deductions on buildings and land improvements. You will be helped to calculate this year's depreciation deduction and keep track of previous years' deductions. Certain information must also be entered on the
- First create the calculation appendix itself from Year-end closing -
The appendix is organised with a summary tab and then a tab for each building or land improvement. You create as many tabs as you need with the green button at the top right 
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- To add a new building/land improvement, go to the tab Add description.
- Select whether the deduction is for a building or a land development from the Type of depreciation deduction list.
- Fill in Description. The name you choose will be used as the name of the asset, both on the tab and on the summary tab.
- If you do not want the year's depreciation deduction to be calculated automatically based on the specified percentage, you can uncheck the box Automatically calculate the year's depreciation deduction.... A manual entry can then be made in the column Depreciation deduction for the year.
- Fill in the boxes Date of acquisition, Description, Acquisition cost and Previous years' depreciation deduction.
- The fields Depreciation deduction for the year, Accumulated depreciation deduction at year-end and Tax residual value will be calculated automatically.
- The values from each asset tab are displayed on the Summary tab.
- The current year's and previous years' depreciation deductions are automatically transferred to Other information on the page Sole proprietorship if the button Transfer... is active at the top of the page.
- Do you want to use the calculation appendix only as an aid without affecting other parts of the program? Just make sure that the Transfer... button is inactive.
Transfer to the NE tax form
- Other information, item 5 - current and previous years' depreciation deductions on buildings
- Other information, item 6 - current and previous years' depreciation deductions on land improvements
General information on depreciation deductions for buildings
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The cost of acquiring a building is deducted through annual depreciation allowances (Chapter 19, §4 IL)
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Depreciation deductions are calculated according to a depreciation schedule based on a certain percentage per year on the acquisition cost of the building. The percentage shall be determined taking into account the economic lifetime of the building. The calculation shall be made from the date of completion or acquisition of the building or, in the case of an improvement, from the date of its completion (Chapter 19, §5 IL).
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Completion usually refers to the point in time when a building is put into use for its intended purpose. This date normally coincides with the date of the final decision. The Building Committee's (Byggnamdsnämndens) final decision is partly a declaration that the committee considers the measures to be completed and partly a statement that the building work may be put into use. The term building is expressed in the singular, which means that the requirement refers to the entire newly constructed building. Depreciation deductions are then calculated according to a depreciation schedule based on the cost of the completed building. It is therefore not possible, for example, to obtain a depreciation deduction in the event of successive completion of different stages within the framework of several depreciation plans running in parallel.
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Skatteverket has issued general advice on annual percentages for depreciation deductions for different types of buildings used for business purposes (SKV A 2005:5). The general advice states that Skatteverket has not taken into account certain special circumstances that may justify a higher percentage. When assessing the economic life of the building, account may also be taken of
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the useful life of the building may be affected by future rationalisation, technological developments, reorganisation of activities and similar circumstances.
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if, due to other circumstances, the value of the building is limited to a relatively short time. Such circumstances may be, for example, that a building is used to exploit a limited ore deposit or that a building used for business purposes and located on someone else's land is not to be vacated by the property owner when the right of use ends.
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See also Skatteverket's information on the calculation of depreciation deductions on buildings in business activities (SKV M 2005:5).
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Note that the rules in Chapter 19 IL are tax decoupled from the accounting. The tax depreciation deduction is not affected by the value and depreciation recognised by the company in the bookkeeping.
The value obtained by multiplying the relevant percentage by the taxable value must be reduced by the depreciation deductions and similar deductions made in the 1982-1993 declarations, if the deduction per year amounts to at least 10 percent of the share in the taxable value above. You must also deduct the depreciation and similar deductions made in later tax returns (after 1993) up to and including last year's, regardless of their size. An example of a similar deduction is the forestry deduction.
