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V3100-14 17 November 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Eligibility for main residence tax deduction under transitional regime if current investment exceeds previous deductions

A taxpayer inquired whether they could apply the main residence investment deduction after 2012 if their current investment exceeds that of previous properties for which deductions were already claimed. The Directorate General for Taxes (DGT) confirmed this is possible under the transitional regime and clarified how the deduction is allocated in cases of co-ownership.

The question raised

A. Right, on the part of spouse A, to apply the deduction for investment in the habitual residence in fiscal years subsequent to 2012, from the moment the amount of the sums invested in their current habitual residence exceeds those that were subject to deduction for previous habitual residences, considering the transitional regime introduced by Law 16/2012, while suppressing the deduction.

The DGT's ruling

Taxpayers who acquired their residence before 2013 may apply the deduction under the transitional regime of the 18th Additional Provision of the Personal Income Tax Law. To do so, the investment in the current residence must exceed the amount that was subject to deduction in previous habitual residences. In the case of co-ownership, each party applies the deduction according to the amounts paid to cover their share of ownership of the property. If one spouse pays more than their proportional share, that excess is considered a loan or a gift in favor of the other.

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