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V0109-22 24 January 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · valor de adquisición

Furniture and appliance costs cannot be included in the property's acquisition value

A query was raised regarding whether the cost of furnishing a kitchen and purchasing appliances can be added to the acquisition value of a property to calculate capital gains. The Directorate General for Taxes (DGT) ruled that these items do not constitute improvements to the real estate and that their depreciation through use is not tax-deductible.

The question raised

Whether the expenses for furnishing and/or purchasing kitchen appliances can be incorporated as an increase in the acquisition value of the dwelling for the purpose of calculating capital gains or losses in Personal Income Tax (IRPF).

The DGT's ruling

The acquisition value includes the cost of investments and improvements that increase the capacity, habitability, or useful life of the property. Furniture and household appliances are not considered improvements to the property, but rather durable consumer goods. Therefore, they cannot be integrated into the acquisition value, and losses due to their use are not computable under the Personal Income Tax Law (LIRPF).

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