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V2287-17 8 September 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Eviction lawsuit expenses are deductible in the tax period in which they are paid

A property owner has enquired about the tax treatment of eviction lawsuit expenses and uncollected rents. The DGT indicates that rental income must be recognised even if not yet received, whereas eviction expenses are deductible in the period they are paid.

The question raised

Taxation and treatment of expenses incurred due to eviction proceedings.

The DGT's ruling

Income from real estate capital must be attributed to the period in which it becomes due, even if it has not been collected. Doubtful debts may be deducted after six months of non-payment without credit renewal. Legal defense expenses arising from eviction proceedings are deductible in the fiscal year in which they are satisfied.

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