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A property owner has enquired about the deductibility and timing of tax deductions for structural reinforcement works carried out on a leased premises. The Directorate General for Taxes (DGT) has ruled that these works constitute an improvement rather than a repair expense.
Property owners must distinguish between repair expenses and structural improvements, as the latter must be deducted through depreciation over time rather than being fully expensed in the year of expenditure.
The tax team reviews your specific situation.
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