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V0529-18 26 February 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · amortización

Inherited olive groves may be depreciated using market value excluding land value

A taxpayer engaged in agricultural activity has requested clarification on how to determine the acquisition value of an inherited olive grove for depreciation purposes. The Directorate General for Taxes (DGT) has ruled that the market value of the estate plus associated expenses must be used, subtracting the land value to establish the depreciation base.

The question raised

Acquisition value of the olive grove for the purposes of its depreciation.

The DGT's ruling

Assets acquired through inheritance are depreciable if the economic activity is continued. The acquisition value shall be the market value, increased by the expenses and taxes of the acquisition. To calculate the depreciation base, the land value must be excluded from the resulting value. If the olive grove was already in production, depreciation may be applied up to the limit of twice the maximum straight-line depreciation coefficient of the simplified table.

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