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V0112-18 19 January 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · amortización

Property depreciation may be deducted by applying 3% to the higher of acquisition cost or cadastral value

A taxpayer inquired about the deductible depreciation expense for a rented, inherited porter's lodge. The Directorate General for Taxes (DGT) ruled that the deductible amount is 3% of the higher value between the acquisition cost and the cadastral value (excluding land).

The question raised

Amount to be deducted as a real estate depreciation expense.

The DGT's ruling

To determine the net yield from real estate capital, the depreciation of the property is deductible provided it does not exceed 3% of the higher of two values: the acquisition cost paid or the cadastral value excluding the land. In the case of assets acquired through inheritance, the acquisition cost shall be the amount of expenses and taxes paid for the acquisition. Each owner shall determine their deductible depreciation based on their ownership coefficient.

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