Depends on the actual situation of the house:
1, if the renovation costs have been added at the time of purchase, this situation should be included in the original value of fixed assets. Because the purchase of the renovation, proof of the house has not yet reached the intended state of use, only after the renovation to be able to use. All reasonable and necessary expenditures incurred before the fixed asset reaches its intended state of use are included in the cost and deducted as depreciation before tax.
2. If the renovation cost is a subsequent expenditure incurred after the fixed assets are put into use, according to Article 69 of the People's Republic of China Enterprise Income Tax Law, only those expenses that meet the requirements of ? (a) the repair expenditure reaches more than 50% of the taxable base at the time of acquisition of the fixed assets; the useful life of the fixed assets is extended for more than 2 years after repair? The subsequent expenditures, as long-term amortized expenses, are amortized and deducted before tax over the remaining useful life of the fixed assets, rather than amortized over 5 years; subsequent expenditures that do not meet the above conditions must be charged to current profit and loss at once.
When a fixed asset is recorded in the month following the month, it is depreciated and recorded in the accumulated depreciation account, and the difference between the original value of the fixed asset and the accumulated depreciation constitutes the net value of the fixed asset. The original value of fixed assets refers to the amount of the original acquisition of fixed assets on the books, and the net fixed assets refers to the original value of fixed assets less accumulated depreciation. Expressed in terms of a formula, the former is the number being subtracted, the latter is the difference.
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