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V1109-19 21 May 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Repair costs for properties intended for rent are deductible subject to generating income

A taxpayer has inquired whether repair works carried out on a property acquired for rental purposes are deductible. The DGT has ruled that these expenses are deductible as income from real estate capital, provided there is a direct correlation with the rental income obtained.

The question raised

Deductibility of the expenses incurred.

The DGT's ruling

Repair and maintenance expenses are deductible for the purpose of determining the net income from real estate capital. In properties held in expectation of rental, deductibility is contingent upon the obtaining of full returns from the lease or assignment of rights. If expenses exceed income, the excess may be deducted in the following four years, subject to legal limits. The owner must prove the status of expectation of rental through means of proof admitted in law.

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