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V0421-22 3 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · amortización

Depreciation of a warehouse cannot be deducted if it is no longer used for economic activity

A taxpayer asks whether they can continue to deduct the depreciation of an old warehouse after moving their business to a new location. The DGT rules that, once the property ceases to be used for the business activity, it is no longer considered an asset tied to the activity, and the right to deduction is lost.

The question raised

Whether, once the relocation has been carried out, the depreciation of the old warehouse may continue to be deducted for Personal Income Tax (IRPF) purposes.

The DGT's ruling

The deductibility of real estate depreciation requires that the asset be an asset used for the purposes of the economic activity. If the real estate ceases to be used for the purposes of the activity, it is understood that it has been de-assigned from the activity. Therefore, the depreciation expense may not be deducted from the moment its use for the economic activity ceases.

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