FRELA assists businesses and professionals in advisory missions for determining depreciation policies and tax impact.
Are you planning to purchase a property or a business?
Entrust the audit and determination of the depreciation policy and its fiscal impact to competent and reputable acquisition lawyers.
If you decide to buy a property or a business, you will need to negotiate and manage your project based on tangible elements. Engaging the services of acquisition lawyers specializing in business and real estate acquisitions will be a valuable asset for you.
Both parties (buyers and sellers) will rely on the evaluation work and the conclusions of audits typically conducted by lawyers or other advisory firms. These professionals will assist the parties in determining the sale price and negotiating the terms and clauses of the purchase agreement.
Our assistance in auditing and determining the depreciation policy and its fiscal impact
During mergers and acquisitions of businesses and real estate properties in France, determining the depreciation policy and its fiscal impact is a crucial step. Here are the key points for determining the depreciation policy and its fiscal impact in these transactions.
Determine the acquisition value: The first step in determining the depreciation policy is to establish the acquisition value of the business or real estate property. This value is typically based on the purchase price or market value.
Evaluate intangible assets: Evaluating intangible assets is essential in determining the depreciation policy as they are often the most significant elements of the transaction. Intangible assets include trademarks, patents, license agreements, and other intangible assets.
Understand the tax rules on depreciation: It is important to understand the tax rules on depreciation to determine the depreciation policy and its fiscal impact. Tax rules vary depending on the asset in question and the nature of the transaction.
Establish a depreciation plan: Once the acquisition value and intangible assets have been evaluated, it is time to establish a depreciation plan. This plan must comply with applicable tax rules.
Determine depreciation rates: Depreciation rates are determined based on the useful life of the asset. Depreciation rates may vary depending on the specific asset.
Understand the fiscal impact of depreciation: It is important to understand the fiscal impact of depreciation on the transaction. Depreciation can reduce the amount of taxes to be paid but may also reduce the value of assets.
Determine depreciation costs: Depreciation costs must be taken into account in the depreciation policy. Costs may include legal fees, appraisal costs, and other costs associated with the transaction.
Establish a tax depreciation plan: It is important to establish a tax depreciation plan to ensure compliance with applicable tax rules. This plan should consider depreciation rates, depreciation costs, and the fiscal impact.
Understand depreciation rules for assets acquired during the fiscal year: If the acquisition is made during the fiscal year, it is important to understand the depreciation rules applicable to assets acquired during the fiscal year. These rules may differ from those applicable to assets acquired at the beginning of the fiscal year.
Due to the complexity of determining the depreciation policy and its fiscal impact, it is strongly recommended to work with recognized and experienced professionals.
Contact us and present your project of acquisition, merger, or sale of businesses or real estate.