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V1205-18 10 May 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Rental income and expenses belong to the usufructuary under civil law

A query was raised regarding whether rental income and expenses should be attributed to the bare owner (the daughter) or the usufructuary (the mother) in a property rental scenario. The Directorate General for Taxes (DGT) ruled that income belongs to the usufructuary, and deductible expenses are those assumed by the usufructuary that are necessary to generate said income.

The question raised

To whom does the imputation of expenses for the leased dwelling correspond for the purposes of determining the net income.

The DGT's ruling

Income from real estate capital is attributed to the owner of the assets in accordance with the rules of legal ownership. The usufructuary is entitled to receive the fruits of the usufructuary assets. Regarding expenses, those necessary for obtaining the income and assumed by the usufructuary shall be deductible, in accordance with the provisions of the instrument constituting the usufruct or the Civil Code.

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