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V0458-22 ·10 March 2022 ·consulta-vinculante Medium impact
Tax

Tax treatment of security deposits withheld for damages and repair costs in rented properties

A co-owner seeks guidance on how to declare income from a security deposit withheld for damages and the repair costs incurred while the property was vacant. The DGT rules that the deposit constitutes gross income and that repair costs are deductible if they are intended to facilitate future rental income.

In 6 key points

How it affects those involved

This ruling clarifies the tax obligations for landlords regarding the treatment of security deposits and the deductibility of maintenance expenses during vacancy periods.

Lifecycle

2022-03-10PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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