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V2120-14 4 August 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Tax relief for main residence depends on ownership and proof of actual debt

A taxpayer inquired whether they could claim 50% of mortgage payments as a deduction when they and their parents are joint and several borrowers, but their partner (a co-owner) is not. The Directorate General for Taxes (DGT) ruled that the deduction depends on the ownership of the property and the debt actually paid, requiring proof of the link between the funds and the debt to deduct amounts for which they are not directly the borrower.

The question raised

Possibility for the taxpayer and their partner to apply the deduction for investment in the primary residence, at 50% each, based on the totality of the payments made by both parties related to the mortgage loan, given that they make them in their capacity as sole owners of the dwelling.

The DGT's ruling

The deduction for investment in the primary residence is linked to the ownership of the property and the amounts paid to acquire the undivided share. If the borrower is not the sole debtor, they must prove that the payments made cover their share of the debt or the debt incurred with other borrowers through loans. The taxpayer may only deduct the portion of the debt corresponding to them as a borrower and the portion they pay to reduce the debt with the other borrowers who lent them funds.

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