Accelerated depreciation on buildings

With an amendment to the Economic Boosting Act, accelerated depreciation can be claimed for buildings that have been purchased or constructed after June 30, 2020, subject to certain conditions.

In the year in which the deduction for wear and tear is to be taken into account for the first time, the depreciation is a maximum of three times the previously valid percentage, in the following year a maximum of double. From the second year onwards, the depreciation is measured as before.

The tax advantage of accelerated depreciation lies in bringing forward a total of three annual depreciations. At the end of the useful life, these three annual depreciations can then not be claimed.

So z. B. a Office building in business assets Purchased from July 1, 2020, this regulation means that in the first year a depreciation of up to 7.5%, in the second year of up to 5% and in the third year and thereafter a depreciation of 2.5% is possible . The six-month depreciation regulation does not apply, so that the full annual depreciation amount is also expensed in the case of acquisition, manufacture or investment in the second half of the year.

A similar regulation is also at Surplus determination applicable. If income is generated from renting and leasing a building as part of private assets, the depreciation rate in the first year is up to 4.5%, in the second year up to 3% and in the third and subsequent years when applying the accelerated depreciation rules up to 1.5%.

As of February 8th, 2021

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