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V2904-20 25 September 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Repair and maintenance works do not increase the acquisition value of the transferred property

A taxpayer inquired whether plumbing, electrical, boiler, and sanitary renovations can be added to the acquisition value of their property to calculate capital gains. The DGT ruled that, as these are repair and maintenance expenses, they do not form part of said value.

The question raised

Method for calculating the capital gain obtained, and whether the works carried out form part of the acquisition value of the transferred property.

The DGT's ruling

The acquisition value includes the cost of investments and improvements, but not repair and maintenance expenses. The latter are those intended to maintain the normal use and useful life of the property, such as the repair of installations or the replacement of elements. Therefore, the described renovation works do not constitute an increase in the acquisition value for the calculation of capital gains or losses.

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