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A self-employed individual requested clarification on how to tax a grant received for constructing a rural house and how the allocation of community property affects it. The DGT ruled that the grant constitutes income from economic activity and its recognition must follow the accounting rules for the depreciation of the asset.
This ruling clarifies the tax treatment of business grants, confirming that they are not recognised as income all at once but are spread over the useful life of the asset through depreciation.
The tax team reviews your specific situation.
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