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V1777-22 ·27 July 2022 ·consulta-vinculante Medium impact
Tax

Mortgage cancellation costs and home improvements increase acquisition value

A taxpayer has enquired whether mortgage cancellation fees, repairs, and the depreciation of furniture are deductible. The Tax Agency has clarified that mortgage cancellation costs and improvements or extensions constitute part of the acquisition value, whereas repairs do not.

In 6 key points

How it affects those involved

This clarification defines which costs can be added to the acquisition value of a property to reduce capital gains tax, distinguishing between capital improvements and maintenance expenses.

Lifecycle

2022-07-27PublishedPublished 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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