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V2012-18 5 July 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancias y pérdidas patrimoniales

Vehicle repair costs cannot be treated as capital losses

A taxpayer inquired whether vehicle repair costs incurred following an accident could be classified as a capital loss. The DGT ruled that they cannot, as these are considered consumption expenses.

The question raised

Consideration of vehicle repair expenses as a capital loss.

The DGT's ruling

The payment of vehicle repair expenses constitutes consumption income for the taxpayer, as it corresponds to the payment for the provision of services and materials. Pursuant to Article 33.1 and 33.5.b) of Law 35/2006, losses due to consumption shall not be accounted for as capital losses.

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