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V1087-18 26 April 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación de rentas inmobiliarias

No imputation of imputed real estate income if property is proven unfit for use due to urban planning reasons

A member of a community of property asks whether they must impute real estate income for a building closed due to lack of habitability following a technical inspection. The DGT rules that no imputation will occur if it is demonstrated that the property is unfit for use.

The question raised

Imputation of real estate income.

The DGT's ruling

According to Article 85.1 of the Personal Income Tax Law, no income shall be imputed for properties under construction or when, due to urban planning reasons, the property is not capable of use. The regulations do not require a specific document, therefore the situation may be proven by any means of evidence admitted in Law. The taxpayer must demonstrate the causes that prevent use, whereas the assessment of said evidence is the competence of the Administration's verification bodies.

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