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V2601-19 24 September 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · afectación exclusiva

Expenses for passenger cars cannot be deducted if used for private purposes

A physiotherapist inquired whether they could deduct expenses for a vehicle used for both professional activity and private use. The Directorate General for Taxes (DGT) ruled that because the vehicle is not used exclusively for business purposes, the expenses are not deductible.

The question raised

1st Deductibility in the Personal Income Tax (IRPF) of the expenses derived from the purchase and maintenance of the vehicle.

The DGT's ruling

To deduct expenses for a passenger vehicle, it must be an asset exclusively used for the economic activity. Passenger cars are not considered to be of accessory or irrelevant use when they are used for private purposes. In the case of renting contracts, the deductibility of the installments also requires exclusive use for the activity and a correlation with the generation of income.

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