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V3257-20 ·30 October 2020 ·consulta-vinculante Medium impact
Tax

Repair works are deductible, while improvements are depreciated by increasing the property value

A taxpayer inquired whether renovation works on rental properties qualify as deductible repair expenses or depreciable improvements. The DGT clarified that repairs intended to maintain normal use are deductible, whereas improvements that increase capacity, habitability, or useful life are considered capital investments.

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2020-10-30PublishedPublished 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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