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V1980-22 16 September 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Maintenance and stable costs cannot be deducted when calculating capital gains from the sale of a horse

A riding instructor has enquired whether maintenance, stable, and fair costs for a horse can be deducted to calculate the capital gain from its sale. The Directorate General for Taxes (DGT) has ruled that these expenses are not inherent to the acquisition nor do they constitute improvements to the asset.

The question raised

Whether, for the purposes of calculating the capital gain or loss in Personal Income Tax, it would be possible to deduct the expenses incurred for maintenance, stable, or participation in fairs.

The DGT's ruling

Maintenance, stable, or participation in fairs expenses are not considered inherent to the acquisition of the horse. They should also not be considered improvements, as they are not linked to an increase in productive capacity or an extension of the useful life of the asset. Therefore, they should not be included when calculating the capital gain or loss derived from the transfer of the animal.

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