What is depreciation and how is it calculated?

“What is depreciation?” question is more than curious by business owners. The meaning of the word depreciation comes across as “fraction of attrition”. That is, depreciation refers to the share that arises in the event of obsolescence, wear out of an asset purchased for businesses. Businesses mostly use the received asset over a period of like a year. But over time, things undergo deformation.

Since the value of worn-out assets decreases, the expense should be written economically. If the assets you use in your company are old, you can also open an account for the amortization list. What is expected of you so that you can make your account can be sorted as follows

• Eşya işletmede bir seneden fazla süredir kullanılıyor olması gerekir
• Eşya, yıpranmalı, deformasyona uğramış olmalı veya kıymeti düşmelidir
• Değerlendirme zamanı geldiğinde envantere dahil olmalıdır
• Amortisman oranlarının 2022 için belirlenen rakamı geçmesi gerekir

Those listed above are the conditions that stand out for allocating depreciation. That is, it comes across as accounting management, indicating the cost of use of an asset. Factors such as how you buy the product, how many years you use it in your business have nothing to do with depreciation.

For real estate, too, the concept of depreciation is important. If your land or land has assets such as houses and facilities, you will be subject to depreciation. As much as a building is erected on the land, there is a state of being able to amortize it. For this, the time set is of importance. On average, such a period of 15 years is determined for this issue. But this condition may differ for various reasons.

Empty plots and plots that are not subject to wear according to Article 314 of the Tax Procedure Code are excluded from the scope of depreciation. That is, if you have a land plot and there is no housing on it, then there is no such situation as taking advantage of it by law. If there is a construction on it, the situation is slightly different.

How to Calculate Depreciation?

Assets subject to depreciation are calculated in accordance with the established rates based on their economic life. There are many different varieties for this. For the calculation of depreciation in real estate, it is necessary to divide the investment by monthly rental income. For example, if a real estate you bought is 420 thousand lirais and your monthly rent is 2500 TL, it will be depreciated as 420000/2500=168.

The main value that exists in the calculation is the price of real estate. This value determines the location of real estate, its size, the distance to public transport and many other factors. In the event that it develops over time, the rate of depreciation of real estate increases. However, the probability of experiencing a loss of value increases for the investor when it is empty. In this case, the period of depreciation of real estate is prolonged.

You should not lose sight of what proportion of profit the conditions will create for you. If you want to get information through a reliable database that depends on these factors, you can take advantage of the tools of Index, a real estate valuation platform.

What are the Types of Depreciation?

It is possible to mention several different varieties for depreciation. Accordingly, the value of your business or real estate is calculated. In the following items, the varieties in question are listed.

• Normal Amortisman: Eşit tutarlı olan bu çeşit, Maliye Bakanlığı tarafından belirlenen oranlara uygun olarak hesaplanmaktadır
• Azalan Bakiyeler Yönetimi: Varlığın ilk yıl alış bedelinden geriye kalan yıllarda ise net defter üzerinden hesaplanması anlamına gelir. Bilançoya göre defter tuttuğunuz takdirde bu çeşidi kullanma şansınız vardır
• Fevkalade Amortisman: Sel, deprem gibi doğal afetlerden dolayı varlığınızın zarar görmesi durumunda kullanabilirsiniz. İşletmeler, bu sayede varlıklarının belirli bir bölümünü amortize etme talebinde bulunabilir.

The optimal option according to the above varieties can be preferred by owners of real estate or business.

The duration of depreciation along with its varieties is also important. For the steps of calculating real estate depreciation, investors are curious about the information relevant to the period. It is possible to define this period as the repayment of the investment with income such as rent provided. In general, the term for real estate is set at 211 months rent. That is, the investment in a standard apartment is paid off in a period of 17.6 years.

Duration varies by provinces. For example, in Istanbul, 211 months in Ankara, this period was defined as 214 months. When two major cities are compared, it is possible to say that the investment is paid off in Istanbul at the fastest rate. Another situation that is important on the subject is the rent multiplier. How many months he pays off with gross rent income, that figure reveals the rent multiplier.

If the property depreciation period, the average is up to 16 years. Duration at this stage differs for various reasons. Zone analysis is effective for determining the depreciation value of the received housing. This factor needs to be taken into account, since it differs by province. As it develops, the duration begins to shorten over time.

Advantages of depreciation

It is necessary to optimally spread the cost of the asset in accordance with the Tax Procedural Code. Therefore, it is possible to say that depreciation has many different advantages. Here are the benefits you can take advantage of

• Uzun vadeli işletmeler için, kesintileri birkaç seneye yaymanızı sağladığından harika bir yöntemdir
• Vergi ve muhasebe amaçlarına göre farklı biçimde hesaplanabilir, ancak temel olarak hesaplama aynıdır
• Her sene amortismanın değerinin düşmesi demek, verginizi azaltmanın en iyi yollarından biridir

Because of these advantages in question, you can also make a calculation for your worn-out asset. To give an example, you have the opportunity to reduce your tax even more by calculating the real value of real estate. This is due to the fact that the condition of the building varies according to the depreciation rate.

High depreciation rates for buildings provide extra advantage. The rate of depreciation of the building differs depending on the condition of the building. Factors such as material and location are effective in determining this ratio. Here it is important how many years the property has been used. Then it is necessary to multiply the value of the property by the resulting value. If the property worth 200000 at this point has been used for 10 years, the rate will be 1/10. Multiplied by 1/10, the value of 20,000 TL is revealed.

You may not be able to take advantage of depreciation under all circumstances. There are also cases when depreciation is not separated, as it is separated. As we have already said, depreciation is reserved for assets that can wear out or become old. For example, there is no need to allocate depreciation to it, since the empty plot will not wear out. In short, for assets that do not have a share of wear and obsolescence, there is no case of separation of depreciation.

Frequently Asked Questions About Amortization

Many people who are related to depreciation, conduct various research. During this research, it is often seen that some issues are often curious. During the research, it usually turns out that the following questions are investigated in the search engine.

Gayrimenkulde Amortisman Süresi Ne Kadar?

The duration of depreciation in real estate differs by provinces. But in general terms the average is 15 years.

Emlak Kaç Yılda Kendini Amorti Eder?

There is an average depreciation period of 16 years, although it varies for various reasons.

Binalar İçin Amortisman Ayrılır mı?

If a building is located on your land, you have a chance to benefit from depreciation. It does not matter what type of building is located on the land.

Binalarda Amortisman Oranı Nedir?

Important for building depreciation rates is how many years the building is and how much is invested. With the use of the property, the value is multiplied and the middle arises.

Neye Amortisman Ayrılmaz?

There are cases when depreciation is not separated. The fact that the property is empty land and land is an example of this situation.