2018 Fixture and Amortization Limitation
1- What are amortizations?
Amortizations are the tools used in an industry more than a year and have a tendency to worn out and lose their value since they are exposed to overuse, and whose values are defined just like the treasures, tools, paraphernalia of the real estate and fixtures.
2-Are amortizations reserved for the states’ transferred assets?
According to the related article, after agreement period, financial assets to be transferred to the municipality or states organization, and the ones who are liable to amortizations according to the capitals’ or leasehold improvements amount will not be liable to amortization. (Tax İmplementation Law, article number 313)
3- Prorata depreciation will be implemented for the automobiles.
Excluding the automobiles of the ones whose transmissions are partially or completely renting cars or operating automobiles, within the account period in which automobiles are activated, the rest will be considered as amortization.
The value corresponding to the non-amortized period will be exterminated at the very end of the redemption period. (Tax Implementation Law 320)
4- How amortization will be implemented to the assets under limit?
Prorata depreciations, trifles and fixtures whose amortizations value are under 1000 Lira in for 2018, will not be amortized, and they will be considered to be general expenses. (Tax İmplementation Law, article number 313)
5- On 29th December, 2017, repetitive official journal number 30285 decided amortization for 2018 as 1000 Lira. (This amount used to be 900 Lira in 2017)
6- On the detection of trade acquirement, assets used in the corporates can be counted as expenses or they can be implemented on amortizations and registered as expenses or decrease.
7- Between the dates of First January 2018 and 31st December 2018, amortization amount is 1000 Lira. If assets value, used in the corporates, is under 1000 Lira, corporates can register them as expenses.
4- In the taking of non-current assets more than 1000 lira, (vat is not included) will be liable to amortization.
5- An asset has to bear some conditions to be implemented to amortization.
An asset;
-On the condition that it is used by the corporation more than a year (more than 365 days) has to be registered in the corporates account.
-Technologic developments, aging, amortization, depending on usage, in other words;
The other stuff which won’t be damaged and will not lose its value, cannot be considered to be amortized staff.
Source: Ismmmo
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