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A taxpayer inquired whether renovation costs, community fees, and property tax (IBI) can be deducted when calculating capital gains from a property sale. The Directorate General for Taxes (DGT) ruled that only investments and improvements increase the acquisition value, excluding repair and maintenance expenses.
This clarification limits the deductible expenses for taxpayers calculating capital gains on property sales, strictly distinguishing between capital improvements and routine maintenance.
The tax team reviews your specific situation.
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