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V3301-20 6 November 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento de capital inmobiliario

Real estate capital income collected after being deducted as bad debt counts as income

A taxpayer inquired about the procedure for unpaid rental income and tenant eviction. The DGT clarified that if a debt previously deducted as bad debt is subsequently collected, it must be included as income in the tax year in which the funds are received.

The question raised

How the taxpayer must proceed in relation to the eviction and the rents pending collection.

The DGT's ruling

Bad debt balances are deductible if the debtor is in insolvency proceedings or if more than six months have passed since the first collection attempt without credit renewal. If a balance that was deducted as an expense is subsequently collected, said amount must be accounted for as income in the fiscal year in which the collection occurs.

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