Calculation formula of hotel decoration depreciation

Decoration expenses included in fixed assets need to meet one of the following conditions:

1, reaching more than 20% of the original price of fixed assets.

2. Extend the service life of fixed assets, which can reach 10 years in the future.

3. The uses and functions of fixed assets have changed and increased.

If one of the above three conditions is not met, it shall be included in the long-term prepaid expenses to be prepaid during the lease term.

If you are the lessee, you can handle it as follows. If the decoration cost is small, it can be included in the current cost at one time. If the cost is large, it can be included in the prepaid expenses and then amortized in installments. However, the amortization period cannot exceed one year, and it can also be equally shared according to the amount during the lease period. Accounting treatment is up to you according to the industry situation of your enterprise. If it is during the opening period, it will also be included in the start-up fee once after the opening, and will be amortized within five years.

How to accrue depreciation for hotel decoration

The specific operation of each local tax policy may not be exactly the same. Dalian State Taxation Bureau stipulates that the renovation expenses incurred by enterprises in renting houses by operating lease can be used as long-term deferred expenses, which will be amortized in installments from the month after the renovation is completed and put into use, and the amortization period shall not be less than 5 years.

I understand that hotel decoration is different from other industries (hotels will be renovated in a few years, while other enterprises may be renovated in 10-20 years). As long as it is within the normal operating period, reasonable amortization is understandable.

How to calculate the depreciation of fixed assets in the next five years after the hotel is put into operation, and what depreciation method should be adopted?

Depreciation is accrued by the straight-line method. 1。 Annual depreciation = original value of fixed assets *( 1-5%)/30-month depreciation = annual depreciation/12 2. According to the tax law, the minimum depreciation period of a house is 20 years annual depreciation = original value of fixed assets *( 1-5%)/20 months depreciation = annual depreciation/12.