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V1850-23 27 June 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · valor de adquisición

Repairs that do not constitute an improvement cannot increase the acquisition value of the asset

A carrier inquires whether a truck repair carried out prior to its sale can be considered an improvement to increase its acquisition value. The DGT responds that, as no increase in capacity, productivity, or useful life is observed, it must be considered a repair expense.

The question raised

Question posed: Whether, for the determination of the capital gain or loss derived from the sale of the truck, the repair carried out before the sale of the truck can be considered an improvement and increase its acquisition value.

The DGT's ruling

For renovation or improvement costs to be incorporated into the value of fixed assets, they must result in an increase in capacity, productivity, or an extension of useful life. If the repair does not meet these accounting requirements, the amount must be considered a repair expense and not an improvement that increases the acquisition value.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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