# Depreciation

Some expenses are depreciable charges that can be deducted from tax. Depreciation is the loss of value of an asset over a given period. Each year, you can deduct the amount of that loss in value.

To record depreciation, follow these steps in the “Finance” section:

1. Click “Add expense”.
2. Choose the “Amortissements” type (depreciation).
3. Select the depreciation **duration**.
4. Save the details by clicking “Save”.

Rentila uses the straight-line depreciation method. This method spreads the cost evenly over the depreciation period. The formula is: annual depreciation = amount of the expense / depreciation duration.

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<p><span class="lead">Examples of useful life</span></p>
<p>Here are some examples of the useful life you can apply to depreciable expenses:</p>
<ul>
<li>Structural work: 75 years</li>
<li>Façade: 75 years</li>
<li>Electrical installation: 30 years</li>
<li>Weatherproofing (windows): 25 years</li>
<li>Roof: 25 years</li>
<li>Heating: 20 years</li>
<li>Plumbing: 20 years</li>
<li>Interior fittings: 12 years</li>
<li>Works: 10 years</li>
<li>Fitted kitchen: 10 years</li>
<li>Appliances: 5 years</li>
<li>Furniture: 5 years</li>
<li>Other small equipment: 5 years</li>
</ul>
<p><span class="lead">Worked example</span></p>
<p>To work out the depreciation of a £10,000 fitted kitchen over 10 years, you can use the straight-line method. This method spreads the cost evenly over the depreciation period. Here is how to calculate it:</p>
<ul>
<li>Base amount of the expense: £10,000</li>
<li>Depreciation duration: 10 years</li>
<li>Depreciation start date: 15 June 2021</li>
</ul>
<p>To find the annual depreciation, divide the total amount of the expense by the depreciation duration:</p>
<p>Annual depreciation = amount of the expense / depreciation duration<br>Annual depreciation = £10,000 / 10 years<br>Annual depreciation = £1,000 a year</p>
<p>So you will depreciate £1,000 each year over the 10 years following 15 June 2021. For 2021 (the start year), you will depreciate a pro-rata share of that £1,000. The formula for the first year is: base amount x rate x (time / 360). In this example: £1,000 x 100% x ((16 + 30 + 30 + 30 + 30 + 30 + 30) / 360) = £544.44</p>
<p>For each following year until 2031, you will depreciate £1,000 as well.</p>
</div>

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https://www.rentila.co.uk/support/depreciation