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A taxpayer inquired whether they could declare a capital loss after purchasing a vehicle, experiencing breakdowns, and subsequently scrapping it for €300. The DGT ruled that such a loss is not applicable because the decrease in value results from the consumption of the asset.
This ruling clarifies that the depreciation of a vehicle due to use and eventual scrapping does not constitute a deductible capital loss for tax purposes.
The tax team reviews your specific situation.
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