Does land belong to OS?
The conditions for recognizing an asset as a fixed asset from an accounting point of view are prescribed in clause 4 of PBU 6/01:
- The object must be used in production, trade or management activities.
- The main purpose of operation is to make a profit.
- Its period of use must exceed 1 year.
- The company must not resell the asset.
If the acquired land meets these four requirements, then it can be accepted in accounting as a fixed asset.
From the point of view of tax accounting, land can be classified as fixed assets if the conditions from clause 1 of Article 257 of the Tax Code of the Russian Federation are met for the site:
- Use for production, management or trading purposes.
- The cost is more than 100 thousand rubles.
That is, according to the law, a company can consider a land plot as a fixed asset.
In this case, the land is accounted for in the amount of all costs of its acquisition by posting Dt 01 Kt 08. The basis document for the posting is the transfer and acceptance certificate OS-1.
Deadlines - Definition
The law clearly defines the time after which land can become ownerless and inefficiently used.
The rule applies equally to agricultural land, as well as individual construction projects.
Lease of territorial zones and construction sites requires compliance with the same rules. If three years have passed and there is no implementation, the contract can be terminated unilaterally.
Deadlines for determining ownerless land
Standard provisions also apply to tenants of agricultural lands.
The rule is relevant if the responsibility for processing is assigned to individual entrepreneurs or private individuals. The contract can be canceled three years after signing the document if the requirements are not met.
Useful life
The useful life of a land plot is not established, since this asset is a non-wearable asset.
In fact, the land can be used indefinitely.
Its value may change as a result of changes and improvements.
In tax accounting for fixed assets, SPI is established in accordance with the depreciation group to which the fixed asset belongs.
However, land plots and other environmental management facilities are not included in any of the existing depreciation groups; therefore, the useful life of land is not established in tax accounting.
Is it necessary to install SPI for buildings and structures?
Depreciation charges in accounting
In accordance with paragraph 17 of PBU 6/01, for fixed assets whose consumer characteristics do not change as they are used, depreciation does not need to be charged.
It also explains that such assets include various environmental management facilities, museum exhibits and collections, as well as land plots.
Consequently, in accounting, depreciation is not charged on land.
It's logical. If an object does not lose its properties, does not wear out and can be used constantly, then there is no point in writing off such an asset through depreciation charges.
There is no direct prohibition on establishing a useful life for land in the PBU.
Theoretically, the owner can set SPI for the site, but there will be no point in it, since this parameter is only necessary to determine depreciation charges, which are not necessary for the land.
Even if a period is set, depreciation on land plots does not need to be calculated in accounting. If there are various objects located on the site, then depreciation in respect of them is calculated in accordance with the generally established procedure.
Leased plots are also not subject to depreciation and are accounted for in off-balance sheet account 001.
The right of permanent (indefinite) use of a land plot is a limited property right in relation to a land plot that is in state or municipal ownership, and means a certain type and extent of possible behavior of the subject - the holder of this right - in relation to the corresponding land plot. This right provides its owner with the opportunity (right) to extract useful properties from the land plot in accordance with the intended purpose of the land. At the same time, a specific period for such use of the land plot is not established; the right of use in this case is unlimited.
The current land legislation provides that for permanent (indefinite) use, land plots that are in state or municipal ownership are provided to certain types of legal entities - state and municipal institutions, state-owned enterprises, historical heritage centers of the presidents of the Russian Federation who have ceased to exercise their powers, government bodies authorities and local governments (clause 1 of Article 20 of the Land Code of the Russian Federation) on the basis of a decision of the state or municipal body authorized to provide land plots for such use. After the entry into force of the Land Code of the Russian Federation, citizens and other legal entities not named in the law are not provided with land plots for permanent (indefinite) use. However, the right of permanent (indefinite) use of land plots in state or municipal ownership, which arose among citizens or legal entities before the entry into force of the Land Code of the Russian Federation, is retained. In accordance with paragraph 2 of Art. 3 of the Federal Law “On the entry into force of the Land Code of the Russian Federation” legal entities, with the exception of those specified in paragraph 1 of Art. 20 of the Land Code of the Russian Federation, are obliged to re-register the right of permanent (indefinite) use of land plots to the right to lease land plots or to acquire land plots in ownership, religious organizations, in addition, re-register for the right of gratuitous fixed-term use at will before the established period in accordance with the rules of Art. 36 Land Code of the Russian Federation. The subject of the right of permanent (perpetual) use of a land plot shall own and use this land plot within the limits established by law, other regulatory legal acts and the act on the provision of the land plot for use (corresponding decision of the authorized state or municipal body). A person to whom a land plot is provided for permanent (indefinite) use has the right, unless otherwise provided by law, to independently use the land plot for the purposes for which it is provided, including the construction for these purposes of buildings, structures and other real estate on the plot, in relation to which such user acquires ownership rights (clause 2 of Article 269 of the Civil Code of the Russian Federation). Neither a citizen nor a legal entity has the right to dispose of a land plot provided with the right of permanent (indefinite) use, since Art. 270 of the Civil Code of the Russian Federation, which granted the user the right to transfer a land plot for rent or free-term use with the consent of the owner of the plot, was declared invalid2. However, in the event of a reorganization of a legal entity, its right to permanent (indefinite) use of a land plot is transferred through the procedure of succession (clause 3 of Article 268 of the Civil Code of the Russian Federation).
Regarding special conditions
For land, special conditions for use are described in Government Decree No. 160 of 2009. This document was signed by the president.
The main factor for these rules is power lines that provide energy to facilities in all populated areas. There are separate regulations for operation under such circumstances. They apply to:
- Representatives of local electrical utilities serving the population.
- Owners of lands that are located in close proximity to the relevant electrical networks.
The Government of the Russian Federation has separately determined the legal forms of use. These are forms of legal ownership that are divided into two categories:
- Real or limited.
- Commitment.
The allocation of land for the following purposes leads to the emergence of property rights:
- For indefinite, permanent use.
- As a lifelong inheritable possession.
There are clearly defined rules for renting objects.
A limited property right is spoken of when clear terms of operation are established.
The rights of the current owner of the land are limited due to the permitted use from the previous owner. With lifelong inheritance, there is additionally the right to re-inherit the land.
The law of obligations is associated with the following actions:
- Purchase of the property from the administration.
- Re-registration of ownership.
- Privatization.
The right of disposal is transferred from the economic entity to the benefit of another citizen. This entails corresponding legal consequences.
Copyright holders of this category are granted extended rights to use at their own discretion, subject to certain responsibilities. This means that the owners are able to organize the distribution of land and the transfer of objects to other persons.
Physical and legal status of the land plot
The physical status of a site is determined by the totality of its natural and anthropogenic characteristics. The physical status is also characterized by the divisibility or indivisibility of the site.
The legal status of a site is formed from the definition of its category (purpose) and permitted types of use, as well as the presence of specific proprietary rights to it. Legal status implies both regulatory regulation (description of the general principles of intended purpose and types of use in legislation) and depends on the behavior of the rights holders of the plots (transition, change and termination of rights).
Land plots with different permissions: consolidation
For private individuals, any order of land distribution is acceptable. It is also possible to combine objects with different purposes.
Only one area must have its permitted use changed under these circumstances. The specific object is chosen by the owner or the administration.
The administration has the right to resolve such issues at its discretion if it is responsible for the distribution of land.
When land is used by developers, buildings with different purposes may appear on the territory. This situation should not cause trouble for owners. After all, activities are carried out based on urban planning plans or other regulatory documents.
Forms of rights
Compliance with a certain regime of rights presupposes that there is an object and a subject according to the order of use of the land. Subjects become not only persons, but also the rights in their property. Objects of law have three levels:
- General.
This is the name given to parts of the earth located on the surface of the globe that have the functions of integral massifs. Or it means land in the form of a form of existence of a certain soil, with vegetation and landscape, and other specific characteristics.
- Generic.
Signs of divisibility of a land plot
Article 6 of the Land Code of the Russian Federation is devoted to the coverage of this feature. A divisible plot is one that can be divided into parts, each of which forms an independent plot of land.
Land plots are recognized as indivisible if their division is impossible without changing their purpose. A typical example of an indivisible land plot is the land of peasant (farm) farms or garden plots.
Each land plot in civil circulation has a combination of the above characteristics. Their content may change during the use of land or changes in legal status. However, changes in specific quantitative and qualitative characteristics do not affect the primary characteristics of a land plot: its classification as a part of the earth’s surface and its physical status.
Author of the article
Permitted use: amendment thereto
Type of land use
Experience knows situations when the distribution of plots suggests a difference in the basic documents, albeit insignificant. Then it is easiest to adjust the main type of use, making it conditionally permitted.
An amendment simply involves making the stated changes to the main document. Additional activities are permissible if the following conditions are met:
- An organic addition to the previously existing context.
- Absence of contradictions in relation to construction regulations.
- Feasibility of use for the owner.
