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V1367-19 11 June 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Only the portion of loan instalments used for the purchase of a main residence is tax-deductible

The inquirer asks which part of the instalments for an extended loan can be deducted as an investment in a main residence and how to calculate the acquisition value of an inherited property that has been sold. The DGT rules that only the proportional part of the instalment financing the acquisition of the home is deductible and explains how to determine the acquisition value of inherited assets.

The question raised

A. What is the amount that must be recorded as the deduction base for the deduction for investment in the primary residence: the amount appearing in the draft, 100% of the amount paid for interest and amortization, or only the part that proportionally corresponds to the part used to acquire the primary residence, and how is this percentage determined.

The DGT's ruling

In extended loans, only the annuities (amortization and interest) in the proportional part of the total capital obtained that is exclusively allocated to financing the acquisition of the primary residence shall entitle the taxpayer to the deduction for investment in the primary residence. The portion of the annuities corresponding to the increase in principal resulting from the extension shall not be included in the deduction base if its purpose is different from the acquisition of the primary residence. For inherited real estate, the acquisition value is the value declared in the Inheritance Tax plus the portion of the tax paid and the attributable expenses, in the proportional part of the inheritance.

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