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V1430-17 6 June 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · amortización mínima

Acquisition value of a property must be reduced by minimum depreciation, even if not claimed as a deduction

A married couple inquired about the minimum depreciation to apply when calculating the acquisition value of a sold property, having previously rented the property out without claiming depreciation in their Personal Income Tax (IRPF) returns. The Directorate General for Taxes (DGT) ruled that the acquisition value must be reduced by the minimum depreciation, regardless of whether it was treated as a deductible expense or not.

The question raised

What percentage or amount corresponds to the minimum depreciation in this case.

The DGT's ruling

To calculate the capital gain or loss from the transfer of real estate, the acquisition value shall be reduced by the amount of tax-deductible depreciation. In any event, the minimum depreciation must be computed, regardless of its actual consideration as an expense. This minimum depreciation shall be the result of applying the fixed percentage established in the current regulations for the determination of the net yield of real estate capital. Said percentage shall be applied according to the number of days of lease and the ownership percentage of each owner in each tax period.

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