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V1638-18 12 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Unpaid rental income must be reported as gross income even if not collected

A landlord has enquired about how to tax rental income that a tenant has ceased to pay. The DGT has ruled that such income must be declared as gross income in the period it becomes due, and that it may be deducted as bad debt after six months.

The question raised

Taxation of the aforementioned income.

The DGT's ruling

Income from residential leases constitutes income from real estate capital and must be attributed to the tax period in which it becomes due, even if it has not been received. Doubtful debts may be deducted as an expense when more than six months have elapsed since the first collection attempt without a credit renewal. If the debt is subsequently collected after its deduction, it shall be accounted for as income in the tax year in which the collection occurs.

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