Depreciation of fixed assets during illness and maternity leave of an entrepreneur


Fixed assets are company assets that must be depreciated over time. Depreciation write-offs are made from the initial value of a given fixed asset - from the month following the month it was put into use, until the month in which the sum of write-offs was equalized with the initial value or liquidation, sale or shortage of the asset was found. What happens if the entrepreneur is ill or is on maternity leave?

Sick or maternity leave and depreciation of fixed assets

In the event of suspension or cessation of business activity or non-use of fixed assets, these assets are not depreciated. Depreciation ceases in the month following the month in which the above-mentioned circumstances occurred. However, in the case of temporarily preventing the use of given fixed assets, further depreciation is possible. Such temporary prevention of the use of a depreciated fixed asset is certainly a stay on sick leave and on maternity leave.

Depreciation write-offs may be further posted, as long as the entrepreneur has not suspended business activities for the time of sick leave or maternity leave. After the maternity leave or sick leave, the taxpayer will continue business activity, so depreciation write-offs can still be classified as tax deductible costs.

The position of the tax authorities

This position is confirmed by the individual tax interpretation issued by the director of the Tax Chamber in Poznań of March 6, 2012 (no. ILPB3 / 423-576 / 11-4 / EK), according to which:

"(...) temporary (...) failure to use a given fixed asset in the case of continuing the activity in which the asset was used, does not result in the loss of the right to make depreciation write-offs for this asset.

(…) The use of the term “cessation of the activity in which these components were used” means the situation in which the activity in which the component was used was ceased, but at the same time the taxpayer continued his business activity. Therefore, only a complete cessation of a given type of business activity justifies the cessation of depreciation write-offs (...). "