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A taxpayer inquired whether plumbing, electrical, boiler, and sanitary renovations can be added to the acquisition value of their property to calculate capital gains. The DGT ruled that, as these are repair and maintenance expenses, they do not form part of said value.
This ruling clarifies that routine maintenance costs cannot be used to increase the cost basis of a property for tax purposes, potentially resulting in a higher taxable capital gain upon sale.
The tax team reviews your specific situation.
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