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The taxpayer asks whether renovation works on their property can be included in the acquisition value to calculate capital gains. The DGT rules that only works resulting in an improvement or extension of the property's capacity or useful life are includable, excluding repair and maintenance expenses.
This ruling clarifies the distinction between capital improvements and maintenance costs for tax purposes, affecting how taxpayers calculate the cost basis of real estate for capital gains tax.
The tax team reviews your specific situation.
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