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V0578-21 11 March 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Amortisation of property and certain pre-rental expenses may be deductible if rental expectation is proven

The taxpayer asks whether they can deduct property amortisation as well as expenses incurred both before and after the start of a rental period. The DGT rules that amortisation is deductible subject to certain limits, and that repair expenses are deductible provided they are intended for the future generation of income rather than for the owner's personal use.

The question raised

It requests to know whether the amortization of the property can be deducted, as well as the possibility of deducting expenses incurred prior to and after the commencement of the lease.

The DGT's ruling

Amortization is deductible as an expense for effective depreciation, not exceeding 3% of the higher of the acquisition cost or the cadastral value (excluding land). For the portion acquired through inheritance, the acquisition cost consists of the acquisition expenses and taxes. Repair and maintenance expenses are deductible if they are directed exclusively toward the future generation of income and not for the owner's enjoyment, and the expectation of rental must be substantiated. The amount of these expenses may not exceed the gross income obtained, and any excess may be offset in the following four years.

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