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An heir inquired whether they could deduct legal fees incurred by their father in 2017 regarding an eviction case. The Directorate General of Taxes (DGT) ruled that such expenses belong to the tax period in which they were incurred and must be deducted by the deceased, not the heir.
This ruling clarifies that tax deductions for legal expenses must be claimed by the taxpayer to whom the expense is attributed, preventing heirs from claiming deductions related to the deceased's prior tax periods.
The tax team reviews your specific situation.
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