How to make entries for the company s purchase of office buildings and garages?

1. The company's purchase of office buildings and garages belongs to the purchase of fixed assets, and the general taxpayers obtain special VAT invoices, and the accounting entries are:

Borrow: Fixed assets.

Tax payable – 60% of the tax amount indicated on the VAT payable (input tax) invoice

Input VAT to be credited.

40% of the tax amount is indicated on the invoice

Credit: bank deposits, etc.

2. Description. 1. The office building and the treasury belong to real estate and should be accounted for through the "fixed assets" account. Fixed assets are tangible assets that have the following characteristics at the same time:

Held for the production of goods, provision of services, leasing or management of business; Useful life of more than one fiscal year. Immovable property refers to property that cannot be moved or that will cause a change in nature or shape after being moved, including buildings and structures. Buildings, including residential, commercial premises, office buildings, and other buildings that can be used to live, work, or carry out other activities.

Structures, including roads, bridges, tunnels, dams, and other structures.

2. The fixed assets purchased by the enterprise shall be debited to the "fixed assets" account and credited to the "bank deposit" account according to the actual purchase price, relevant taxes and fees, and transportation costs, loading and unloading fees and professional service fees attributable to the assets incurred before the fixed assets reach the intended usable state.

3. The Interim Measures for the Installment Deduction of Input Tax on Immovable Property stipulates that the immovable property acquired by general VAT taxpayers (hereinafter referred to as taxpayers) after May 1, 2016 and accounted for according to fixed assets in the accounting system, as well as the immovable property under construction that occurred after May 1, 2016, shall be deducted from the output tax in two years in accordance with the relevant provisions of these Measures, with the deduction ratio of 60% in the first year and 40% in the second year. The tax deduction will be deducted from the output tax in the 13th month from the month in which the tax deduction certificate is obtained.

4. The Ministry of Finance's "Provisions on the Accounting Treatment of Value-Added Tax" stipulates that the accounting treatment of the purchase of immovable property or the construction of immovable property in progress shall be deducted annually according to the prescribed input tax: according to the acquisition cost, the accounts of "fixed assets" and "construction in progress" shall be debited, and the account of "tax payable - VAT payable (input tax)" shall be debited according to the deductible VAT amount of the current period, and the account of "tax payable - input tax to be deducted" shall be debited according to the amount of VAT that can be deducted in the following period, and the account shall be credited according to the amount payable or actually paid" Accounts Payable", Notes Payable, Bank Deposits, etc. When the input VAT that has not yet been deducted is allowed to be deducted in a later period, the account "Tax Payable - VAT Payable (Input Tax)" will be debited and the "Tax Payable - Input VAT to be Deducted" account will be credited according to the allowable deduction amount.

Borrow: Fixed assets.

Credit: bank deposits, etc.

1. The office building and the treasury belong to real estate and should be accounted for through the "fixed assets" account.

2. The fixed assets purchased by the enterprise shall be debited to the "fixed assets" account and credited to the "bank deposit" account according to the actual purchase price, relevant taxes and fees, and transportation costs, loading and unloading fees and professional service fees attributable to the assets incurred before the fixed assets reach the intended usable state.

3. The Interim Measures for the Installment Deduction of Input Tax on Immovable Property stipulates that the immovable property acquired by general VAT taxpayers (hereinafter referred to as taxpayers) after May 1, 2016 and accounted for according to fixed assets in the accounting system, as well as the immovable property under construction that occurred after May 1, 2016, shall be deducted from the output tax in two years in accordance with the relevant provisions of these Measures, with the deduction ratio of 60% in the first year and 40% in the second year. The tax deduction will be deducted from the output tax in the 13th month from the month in which the tax deduction certificate is obtained.

4. The Ministry of Finance's "Provisions on the Accounting Treatment of Value-Added Tax" stipulates that the purchase of immovable property or the construction of immovable property shall be deducted from the input tax in accordance with the regulations.

Borrow: Fixed assets.

Credit: Bank deposits.