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The taxpayer asks whether they can continue claiming the home investment deduction after purchasing a new property and renting out the old one. The DGT states that the deduction ends when the property is no longer the habitual residence.
Possibility of continuing to apply the deduction for investment in habitual residence after ceasing to reside in it.
From the moment the taxpayer ceases to reside in their habitual residence, it loses such status. Consequently, the right to claim the deduction for amounts related to its acquisition paid from that moment onwards is simultaneously lost. The taxpayer may only apply the deduction in the tax period in which they lose the status of habitual residence regarding the amounts paid up to that instant.
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