Accelerated depreciation

Explanation of accelerated depreciation for starters and environmental business assets.

Accelerated depreciation means that, in addition to the regular method, you decide how and when to depreciate a business asset. This can provide a liquidity and interest advantage.

Just like regular depreciation, the book value may not drop below the residual value.

Who this applies to

The most important schemes for accelerated depreciation are:

Starting entrepreneurs
Environmental business assets (VAMIL)

You choose the pace at which you depreciate, as long as you stay within the rules. If you put the asset into use immediately after the investment, you may start depreciating right away. If you do not put it into use yet, you may only depreciate up to the amount paid in the investment year.

How NettoWise handles this

NettoWise currently supports regular depreciation. If you use accelerated depreciation, the outcome in NettoWise may differ from your final tax filing.

How to apply this in NettoWise

In NettoWise you decide the useful life of the asset. If you want the depreciation to happen in 1 year, set the useful life to 1 year. The depreciation will then be fully applied within that year.

Always use values from your own calculation or advice to avoid incorrect amounts.