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A property owner has enquired whether she can deduct renovation expenses for a property she intends to rent out. The Directorate General for Taxes (DGT) has ruled that repair and maintenance costs are deductible provided that the intention to rent is proven and the expenses are correlated with future income.
This ruling clarifies the tax treatment for owners of properties currently vacant but intended for rental, allowing for the deduction of maintenance costs if the rental intent is sufficiently documented.
The tax team reviews your specific situation.
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