{"id":707,"date":"2022-10-28T23:40:58","date_gmt":"2022-10-28T21:40:58","guid":{"rendered":"https:\/\/www.altertax-avocats.com\/?p=707"},"modified":"2022-12-23T21:30:49","modified_gmt":"2022-12-23T20:30:49","slug":"for-companies-how-to-deduct-your-depreciation","status":"publish","type":"post","link":"https:\/\/www.altertax-avocats.com\/en\/for-companies-how-to-deduct-your-depreciation\/","title":{"rendered":"For companies, how to deduct your depreciation?"},"content":{"rendered":"

[et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” collapsed=”off” global_colors_info=”{}”][et_pb_row use_custom_gutter=”on” gutter_width=”1″ _builder_version=”4.18.0″ _module_preset=”default” locked=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”|40px|||false|false” global_colors_info=”{}”][et_pb_post_title date_format=”j-m-y” comments=”off” featured_image=”off” _builder_version=”4.18.0″ _module_preset=”default” title_text_color=”#11677A” title_font_size=”32px” custom_margin=”||30px||false|false” global_colors_info=”{}”][\/et_pb_post_title][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font=”Quicksand||||||||” link_text_color=”#666666″ global_colors_info=”{}”]<\/p>\n

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As a sole trader or company director, it is essential that you optimize your company’s tax situation by using deductions on your taxable income.\u00a0\u00a0<\/p>\n

Depreciation allows you to reduce your taxes by taking into account the loss in value of some of your assets and investments.\u00a0<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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What is depreciation?<\/span><\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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First of all, it is important to understand what the term “depreciation” refers to. It is an accounting concept that makes it possible to recognize the depreciation of an asset (goods and rights of the company), due to its use.\u00a0\u00a0<\/p>\n

The depreciation period corresponds to the period of use of the asset and varies according to the asset. For example, furniture can be depreciated over a period of 10 years while computer equipment can only be depreciated over 3 years.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Depreciable items<\/span><\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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The condition for the depreciation of an asset is that it is used by the company for its activity in a durable way. This differentiates fixed assets from inventories, which are only temporary. For example, the buildings of a property dealer are not depreciable, nor are the cars owned by a dealer or manufacturer, as they are accounted for as inventory.\u00a0\u00a0<\/p>\n

Depreciable items are therefore all the tangible items that make up the assets of a company (buildings, furniture, equipment, tools, etc.). Their depreciation constitutes a real loss for the company and must therefore be deducted from the taxable result.\u00a0\u00a0<\/p>\n

It should be noted that intangible assets can also be amortized if they are clearly identifiable and provide future economic benefits, for example software, trademarks and patents.\u00a0<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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*The 2022 Finance Act created a temporary goodwill amortization scheme for those acquired on or after January 1, 2022 and until December 31, 2025.<\/p>\n

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The amortization method<\/span><\/h3>\n<\/div>\n<\/div>\n
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\u00a0The company can use several depreciation techniques:<\/p>\n